SS Air Free Essays

3. Depreciation percentage=$1,640,200/$15,411,620 = 10. 64% New Fixed Assets=$15,411,620 + $30,000,000 = $45,411,620 $45,411,620*. We will write a custom essay sample on SS Air or any similar topic only for you Order Now 1064 = $4,831,796 new depreciation Pro forma Income Statement Sales ($36,599,300*1. 12)$40,991,216 Cost of Goods Sold ($26,669,496*1. 12) 29,869,836 Other Expenses ($4,641,000*1. 12) 5,197,920 Depreciation 4,831,796 EBIT 1,091,664 Interest 573,200 Taxable Income 518,464 Taxes (40%) 207,386 Net Income $311,078 Dividends ($311,0786*0. 30)$93,323 Add to Retained Earnings $217,755 Pro forma Balance Sheet AssetsLiabilities and Stockholder’s Equity Current AssetsCurrent Liabilities Cash ($396,900*1. 12)$444,528 Accounts Payable ($844,550*1. 12) $945,896 Accounts Receivable ($637,560*1. 12) 714,067 Notes Payable 1,928,500 Inventory ($933,400*1. 12)1,045,408Total Current Liabilities 2,874,396 Total Current Assets $2,204,003Long-term Debt $5,050,000 Fixed Assets Net Plant and Stockholder’s Equity Equipment $45,411,620 Common Stock $322,500 Retained Earnings 9,451,685 Total Equity $9,774,185 Total Assets $47,615,623 Total Liabilities and Stockholder’s Equity $17,698,581 EFN=$47,615,623-$17,698,581 = $29,917,042 Since the fixed assets have increased at a faster percentage than sales, capacity utilization for next year will decrease because the addition of the new line would expand capacity much more than would normally be required. How to cite SS Air, Essay examples