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Additional Information to solve the question:
1. Increase in Sales percentage will be assumed to apply only to Cost of Goods Sold on the income statement.
2. Depreciation and Amortization, Change in Operating Assets, Change in Current Liabilities, and Dividends Paid are constant.
3. Net Additions to Property, Change to Other Assets, and Change in Long-term Debt are $0.00.

Question:
Amounts are in thousands of dollars (except number of shares and price per share):
Kiwi Fruit Company Balance Sheet
Cash and equivalents $ 570
Operating assets 650
Property, plant, and equipment 2,700
Other assets 110

Total assets $ 4,030

Current liabilities $ 920
Long-term debt 1,280
Other liabilities 120

Total liabilities $ 2,320

Paid in capital $ 340
Retained earnings 1,370

Total equity $ 1,710

Total liabilities and equity $ 4,030


Kiwi Fruit Company Income Statement
Net sales $ 7,800
Cost of goods sold (5,900 )

Gross profit $ 1,900
Operating expense (990 )

Operating income $ 910
Other income 105
Net interest expense (200 )


Pretax income $ 815
Income tax (285 )

Net income $ 530

Earnings per share $ 2.00
Shares outstanding 265,000
Recent price $ 34.50

Kiwi Fruit Company Cash Flow Statement
Net income $ 530
Depreciation and amortization 175
Changes in operating assets (90 )
Changes in current liabilities (120 )

Operating cash flow $ 495

Net additions to properties $ 180
Changes in other assets (80 )

Investing cash flow $ 100

Issuance/redemption of long-term debt $ (190 )
Dividends paid (220 )

Financing cash flow $ (410 )
Net cash increase $ 185


Prepare a pro forma income statement, balance sheet, and cash flow statement for Kiwi Fruit assuming a 10 percent increase in sales. (Leave no cells blank - be certain to enter "0" wherever required. Negative amounts should be indicated by a minus sign. Input all amounts as thousands of dollars. Round earnings per share to 2 decimal places. Omit the "$" sign in your response.)


Kiwi Fruit Company Pro Forma Income Statement

Net sales $

Cost of goods sold


Gross profit $

Operating expense


Operating income $

Other income

Net interest expense


Pretax income $

Income tax


Net income $


Earnings per share $

Shares outstanding


Kiwi Fruit Company Pro Forma Cash Flow Statement

Net income $

Depreciation and amortization

Changes in operating assets

Changes in current liabilities


Operating cash flow $

Net additions to property $

Changes in other assets


Investing cash flow $


Issuance/redemption of long-term debt $

Dividends paid


Financing cash flow $

Net cash increase $



Kiwi Fruit Company Pro Forma Balance Sheet

Cash and equivalents $

Operating assets

Property, plant, and equipment

Other assets


Total assets $


Current liabilities $

Long-term debt

Other liabilities


Total liabilities $

Paid in capital $

Retained earnings


Total equity $

Total liabilities and equity $


Sagot :

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