Question
|
Major Manuscripts, Inc.
2012 Income Statement
|
|
Net sales
|
$
|
9,500
|
|
Cost of goods sold
|
|
7,715
|
|
Depreciation
|
|
380
|
|
Earnings before interest and taxes
|
$
|
1,405
|
|
Interest paid
|
|
50
|
|
Taxable Income
|
$
|
1,355
|
|
Taxes
|
|
508
|
|
Net income
|
$
|
847
|
|
Dividends
|
$
|
198
|
|
Major Manuscripts, Inc.
2012 Balance Sheet
|
|
2012
|
|
|
2012
|
|
Cash
|
$
|
4,100
|
|
Accounts payable
|
$
|
3,790
|
|
Accounts rec.
|
|
1,050
|
|
Long-term debt
|
|
230
|
|
Inventory
|
|
4,400
|
|
Common stock
|
$
|
4,500
|
|
Total
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$
|
9,550
|
|
Retained earnings
|
|
6,130
|
|
Net fixed assets
|
|
5,100
|
|
|
|
|
|
Total assets
|
$
|
14,650
|
|
Total liabilities & equity
|
$
|
14,650
|
Major Manuscripts, Inc., is currently operating at maximum capacity. All costs, assets, and current liabilities vary directly with sales. The tax rate and the dividend payout ratio will remain constant.
In 2013, no new equity will be raised and sales are projected to increase by 10 percent. Construct the pro formas for 2013 and answer the following question.
1)Projected total assets= $________
2)Projected retained earnings= $________
3)Additional new debt required= $________