Pro Forma Statements
EXERCISES
- Using data from CABS, create pro forma income statements. CABS expects sales to increase by 5% (worst case), 10% (most likely) or 15% (best case). Using the percent of sales method (and assuming that only COGS and SG&A costs increase), create new balance sheets for the best, worst and most likely cases.
CABS Pro Forma Income Statement
CABS Income Statement (Thousands of Dollars)
-
Using the following assumptions, create new pro forma balance sheets for CABS.
- The company wants to hold at least $100 in cash.
- The firm's long-term debt will decrease to 82.6.
- No new common stock will be issued.
- Accounts receivable take on average 80 days to collect.
- The company would like to hold 25 in inventory.
- The tax rate will remain the same.
- The note payable will remain the same.
- The company typically pays 45 days and accounts payable are projected to be 123.
CABS Pro Forma Balance Sheet
CABS Balance Sheet (Thousands of Dollars)