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Net Income
4,815,000
Transfer this income statement to an Excel spreadsheet and begin to prepare a Pro Forma
Income statement for 2016 based on the following information:
1. Sales revenue to increase 5.2%, COGS to increase 4.5%, S,G&A will increase 3.8%
and depreciation expense will be $3,255,000. Assume interest expense to be $375,000
and taxes are to be 40% of taxable income. You will now have income statements for
2015 and 2016 for ICS Manufacturing.
This is the balance sheet information for ICS Manufacturing Company:
ICS Manufacturing Company
Balance Sheet for year ending December 31, 2015
Assets
Liabilities
Cash
$2,625,000
Accounts Payable
$5,825,000
Accounts Receivable $2,715,000
Other Current
Liabilities $3,365,000
Inventories
$1,514,000
Current Liabilities $9,190,000
Total Current Assets $6,854,000
Long Term Assets
P, P & E
$12,745,000
$1,225,000
Goodwill
Debt
$2,230,000
Intangible Assets
$5,275,000
$3,455,000
Total LT Assets
$19,225,000
$12,645,000
Total Assets
$26,079,000
Long Term Liabilities
Long Term Debt
$1,205,000
Other LT
Total LT Liabilities
Total Liabilities
Owners’ Equity
Common Stock
$6,425,000
Retained Earnings
$7,009,000
Total