Income statement and Balance Sheet
Carlisle’s balance sheet as of December 31, 2022 appears in the below spreadsheet.
Use the information below to prepare a pro-forma income statement and balance sheet for the next year (as of December 31, 2023).
Assumptions:
Sales are forecast to be $2,650,000 for next year
COGS to sales ratio will be 0.84
SG&A to sales ratio will be 0.14
Depreciation will be $8,300
Interest rate on loan is 10% per year
Tax rate will be 40%
The owners will be paid a dividend of $8,420
Firm would maintain a minimum cash balance of at least $40,000
The Days Sales Outstanding (DSO) will be 14 days
The Days Sales Inventory (DSI) will be 43 days
Firm plans to purchase a truck for $14,000 in the next year
Firm will continue to repay its existing bank loan in annual installments of $20,000 per year
Days Payables Outstanding (DPO) will be 21 days
Accrued expenses will stay at the same level of $11,300
