# PROFORMA STATEMENTS AND RATIOS The BIB-HOP Manufacturing Company was very satisfied with their ox...

###### Question:

PROFORMA STATEMENTS AND RATIOS The BIB-HOP Manufacturing Company was very satisfied with their ox performance The company had only begun operations the prior year, and as a result sales had been slow However things had picked up considerably in x wie sales more than doubing in volume B8-HOP had changed none of its business practices during the year and had managed to hold its cost of goods sold to 78% of sales A1 sales were made on credit, and payment was requred within 30 days ofthe sale The company pad for its purchases r, 30 days and mantained acash balance of 20% in sales The only thing that had changed during the year was the company's inventory tumover, which had jumped from 3x to 6x. While possble necessity of increasing its short-term debt. In order to assess the situation, the company was in the process of completing the financial statements shown below. (iv Tum Co.G.Sanw as the balancing account (a plug 4,080 ost of 1,560 320 before tax 120.00 Taxes @ 40% after tax sheet 400.00 164 ash otal cument assets t property. plant and otal assets counts payabl 1 6 12821 otal current liabilities tem debt stock 372 480 800 480 800 otal long-term debt otal Labiities and urrent assets urrent liablities et asset tunover for he years xxxo and xxxt 2. Build the common size income statements for years xxxo and ox tps imail-attachment a9, 90 11AMM Page 1 of 2
3. What is your assessment of BIB-HOP Manufacturing Company based on the figures obtained in questions 1 and 2 Will the company need to raise external funds (EFN or AFN) in xoox1, and how much? 4. Complete the statements for xxx1 assuming that cost of goods sold is 83%, that the company mantans cash balance of 15% of sales, everything else remains as stated before in the problem And do guestions 1.2anda
FIN350 Spreadsheet Project 2 Five Points of Clarification Accounts Receivable and Accounts Payable 1. The problem specifies that it takes the firm 30 days to collect its sales. This means that the days of sales outstanding (DSO), sometimes also called average collection period (ACP), equal 30 days. The ratio that measures DSO or ACP = A. R/(credit Sales/360). You use this ratio to find A.R. (accounts receivable) This problem assumes that all sales are made on credit 2. The problem also says that the firm takes 30 days to pay their purchases. Thus, the Average Payment Period (APP) for the firm is 30 days. The ratio that measures APP is APP A·P/(credit Purchases/360). You use this ratio to find A.P. (accounts payable). Assume that all the firms purchases are made on credit. However, the problem does not say how much purchases the firm plans to make in the year XXXI. You need to calculate the expected purchases first. You can follow exactly the same steps that we followed in class when we worked out the "Jordan Stores" example to illustrate the Financial Planning and Forecasting approach that we labeled the "Composite Method". This example is posted on "Canvas" in the Module on Financial Planning and Forecasting. The illustration example (Jordan Stores" that is in the section titled "Composite Method") provides all the steps to follow in order to calculate the forecasted purchases. In any case, this is briefly how you would calculate the We know that for Inventories, we can generally write the following: Beginning Inventories+ Purchases-Ending Inventories Cost of Goods Sold () From (1) you can estimate Purchases for the forecast /41, 10 11 AM Page 1 of 2
period as Purchases = Cost of Goods Sold Beginning Inventories (2) Ending inventories- "Plug Account" 3. Furthermore the problem says that the additional funds needed (AFN) will be raised as Short term Debt. Thus, you should use the account "Short-Term Notes Payable" as a plug account" It means that after completing your profoma Balance Sheet, use the "Short-Term Notes Payable" account to make it balance by entering the appropriate dollar amount that will make the firm's Total Liabilities and Net Worth" equal its "Total Assets". Do just as you did with the "Cash and Equivalents" account in spreadsheet project  1 . As a result, an AFN (or EFN) account does not have to show on your proforma balance sheet as a separate item even though you have to provide the Samount of the EFN/AFN Dividend 4. Finally, the problem does not mention any dividend payout rate. Thus, assume no dividend payment. That is, the company retains all of its Net Profit. Do not hesitate to ask if you have more questions on the spreadsheet assignment 5. Spreadsheet projects must be completed with excel. Thus this project must be completed with excel. Projects that are not done with excel will be downgraded. 6. No handwritten submission is accepted. 10-11 AM

#### Similar Solved Questions

##### I am wondering how to figure this problem out The controller of the Red Wing Corporation...
i am wondering how to figure this problem out The controller of the Red Wing Corporation is in the process of preparing the company's 2018 financial statements. She is trying to determine the correct balance of cash and cash equivalents to be reported as a current asset in the balance sheet. ...
##### Discuss the value of qualitative research and ethical considerations related to this type of research.
Discuss the value of qualitative research and ethical considerations related to this type of research....
##### Calculate the enthalpy change for heating 28.02 g of N2 (g) from 100°C to 150°C
calculate the enthalpy change for heating 28.02 g of N2 (g) from 100°C to 150°C...
##### During natural disasters like hurricanes, when the community is living in shelters, why would there be...
During natural disasters like hurricanes, when the community is living in shelters, why would there be a concern about a tuberculosis outbreak? What circumstances have led to the spread of drug-resistant tuberculosis? Mary, a nurse, skin test was positive for tuberculosis. Does this mean she has tub...
##### Question 4: (a) Consider a digital filter with impulse response h(n) with length M-3 while the...
Question 4: (a) Consider a digital filter with impulse response h(n) with length M-3 while the input x(n) has length V-7, as follows: The total number of blocks B x(n) = {1,2,3,1,2,1,3), h(n) = {1,2,1) B> V+M 1 L-M+ 1...
##### B) Discuss to what extent lender of last resort and deposit insurance can serve as destabilizers...
b) Discuss to what extent lender of last resort and deposit insurance can serve as destabilizers to the banking system. What are the measures that can be applied to address instabilities? (10 marks)...
##### Find the volume of the solid generated by revolving the plane region bounded by the following equations about the x-axis (Use the WASHER method): Find the volume of the solid generated by re...
Find the volume of the solid generated by revolving the plane region bounded by the following equations about the x-axis (Use the WASHER method): Find the volume of the solid generated by revolving the plane region bounded by the following equations about the x-axis (Use the WASHER method):...
##### A sell-or-process further decision involves deciding whether to Accept a special order for a price lower...
A sell-or-process further decision involves deciding whether to Accept a special order for a price lower than normal Continue a product line or eliminate it Sella product as is or continue to refine it Produce a product in-house or outsource it Knowledge Check 02 Potomac Backpacks, Inc. manufactures...
##### Feedback See Periodic lable See Hin Pyridine (CsHsN) is a particularly foul-smelling substance used in manufacturing...
Feedback See Periodic lable See Hin Pyridine (CsHsN) is a particularly foul-smelling substance used in manufacturing pesticides and plastic resins. Calculate the pH of a 0.135 M solution of pyridine (Kp- 1.4x10). 10.64 3rd attempt 2nd attempt 1st attempt K13/17 VIEW SOLUTION C TRY AG 15 OF 17 QUESTI...
##### Please summarize and analyze this article in to 300 words Difference Between Wholesale and Retail Wholesale...
Please summarize and analyze this article in to 300 words Difference Between Wholesale and Retail Wholesale vs Retail The terms "wholesale" and "retail" themselves explain the difference. Wholesale" means "selling in large quantities" and "retail" means "s...
##### Lamonda Corp. uses a job order cost system. On April 1, the accounts had balances as...
Lamonda Corp. uses a job order cost system. On April 1, the accounts had balances as shown in the T-accounts below: The following transactions occurred during April: (a) Purchased materials on account at a cost of $136,000. (b) Requisitioned materials at a cost of$122,000, of which \$28,000 was for ...
##### What are all the possible rational zeros for f(x)=2x^3+5x^2+4x+1 and how do you find all zeros?
What are all the possible rational zeros for f(x)=2x^3+5x^2+4x+1 and how do you find all zeros?...
##### Scores of an IQ test have a​ bell-shaped distribution with a mean of 100 and a...
Scores of an IQ test have a​ bell-shaped distribution with a mean of 100 and a standard deviation of 14. Use the empirical rule to determine the following. ​( a) What percentage of people has an IQ score between 72 and 128​? ​(b) What percentage of people has an IQ score less...
##### . PN 200 Fundamentals of Nursing II Concept Map - Pneumonia The sister of Calvin Kline...
. PN 200 Fundamentals of Nursing II Concept Map - Pneumonia The sister of Calvin Kline called to report that her 71 year-old brother came down with a fever 2 days ago. Now he has shaking chills, productive cough, inability to lie down to sleep because "He cannot stop coughing" Mr. Kline is e...
##### 4. A physician wants to compare the blood pressures of six patients before and after treatment...
4. A physician wants to compare the blood pressures of six patients before and after treatment with a drug. The blood pressures are as follows: Patient 1 2 3 4 5 6 Before Drug 168 171 182 167 174 170 After Drug 171 170 180 173 178 172 The physician wants to test if there is a significant change of t...