Prepare a pro forma balance sheet for the upcoming fiscal year. Company X's current balance sheet, submitted at the end of their fiscal year, September 30, 2015, is displayed below. Company X has a policy of maintaining a cash balance of $75,000. The company plans to acquire a new building for 90,000, and purchase new equipment for $15,000 over the next year. Net sales over the previous year were $3.6 million and the company expects sales to grow by 8% in the next year, with a gross margin of 12%. Purchases of materials are expected to be $3.5 million, the collection period is expected to be 30 days and accounts payable will be 15 days. Net Income is anticipated to be 1.5% of sales, and the tax rate is 30%. Company policy is to have a retention ratio of 20%, and depreciation is expected to be $40,000 over the coming year
| Company X Balance Sheet as of Sept 30, 2015 |
| Cash |
89.4 |
| A/R |
300 |
| Inventory |
156.5 |
| Current Assets |
545.9 |
| PP&E |
306.7 |
| Ace'd Depreciation |
102.4 |
| Net Fixed Assets |
204.3 |
| Other Assets |
45.2 |
| Total Assets |
795.4 |
| A/P |
135,6 |
| Notes Payable |
90 |
| Accrued Expenses & Taxes |
19.4 |
| Long-term Debt |
260 |
| Total Liabilities |
505 |
| Capital Stock |
275 |
| Retained Earnings |
15.4 |
| Total Equity |
290.4 |
| Total Liabilities & Shareholder Equity |
795.4 |