FIN 419 Expect Success/uophelp.com FIN 419 Expect Success/uophelp.com | Page 34

Total LT Assets
Total Liabilities
Total Assets

$19,225,000
$12,645,000
$26,079,000
Owners’

Equity
Common
Stock

$6,425,000
Retained

Earnings

$7,009,000
Total

Owners’ Equity

$13,434,000
Total

Liab/OE

$26,079,000

Transfer this balance sheet to an Excel spreadsheet and begin to
prepare a Pro Forma Balance Sheet for 2016 based on the following
information:
2. Cash will increase to $2,825,000 and accounts receivable will
increase by 15%. The inventories will go up 35% and P, P, &E will
go up $2,000,000 with an expansion to the plant. Long term debt will
increase to $2,000,000 to help finance the plant expansion and add
$1,137,150 to other LT debt.. You will now have balance sheets for
2015 and 2016 for ICS Manufacturing.
Using the 2015 and 2016 financials for ICS, complete the following –
show calculations and/or numbers you used to derive your answer:
3. ICS wants to take around $400,000 of its cash and invest in
marketable securities. They anticipate receiving around $7.5% interest
on their investment and would like to have it held for 10 years. What
will be the FV of this $400,000 investment?