pro forma income statement
Percent of sales: Tomey Supply Company”s financial statements for the most recent fiscal year are shown below. The company projects that sales will increase by 20 percent next year. Assume that all costs and assets increase directly with sales. The company has a constant 33 percent dividend payout ratio and has no plans to issue new equity. Any financing needed will be raised through the sale of long-term debt. Prepare pro forma financial statements for the coming year based on this information, and calculate the EFN for Tomey.
Tomey Supply Company Income Statement and Balance Sheet
Income Statement
Balance Sheet
Net sales
$1,768,121
Assets:
Costs
1,116,487
Current Assets
$280,754
EBT
651,634
Net Fixed assets
713,655
Taxes(35%)
228,072
Total assets
$994,409
Net income
$423,562
Liabilities and Equity:
Current Liabilities
$167,326
Long term debt
319,456
Common Stock
200,000
Retained earning
307,627
Total liabilities and equity
$994,409