Ejercicios Proforma
Ejercicios Proforma
Ejercicios Proforma
Financial Tools
LG 4 P4–13 Cash budget: Scenario analysis Markham Enterprises needs to plan its cash require-
ments and short-term investment opportunities for the months of June, July, and
August. The following data are available. The beginning balance is –$28,000 for
June and the minimum required cash balance is $30,000. All amounts are shown in
thousands of dollars.
LG 4 P4–14 Multiple cash budgets: Scenario analysis Brownstein, Inc., expects sales of $100,000
during each of the next 3 months. It will make monthly purchases of $60,000 during
this time. Wages and salaries are $10,000 per month plus 5% of sales. Brownstein
expects to make a tax payment of $20,000 in the next month and a $15,000 pur-
chase of fixed assets in the second month and to receive $8,000 in cash from the sale
of an asset in the third month. All sales and purchases are for cash. Beginning cash
and the minimum cash balance are assumed to be zero.
a. Construct a cash budget for the next 3 months.
b. Brownstein is unsure of the sales levels, but all other figures are certain. If the
most pessimistic sales figure is $80,000 per month and the most optimistic is
$120,000 per month, what are the monthly minimum and maximum ending cash
balances that the firm can expect for each of the 1-month periods?
c. Briefly discuss how the financial manager can use the data in parts a and b to
plan for financing needs.
LG 5 P4–15 Pro forma income statement Bells Manufacturing estimates that the sales for the
2016 financial year will be $2.25 million. No new borrowing was obtained and,
therefore, the interest expense remained unchanged at $24,500. Bells Manufacturing
is planning on paying cash dividends of $85,000 during 2016. Refer to the financial
data in the table while answering the following:
a. Compile the pro forma income statement for the year ended December 31, 2016,
using the percentage-of-sales method.
b. Compile the pro forma income statement for the year ended December 31, 2016,
using the fixed and variable cost data.
c. As the financial manager, which of the two pro forma statements would you re-
gard as more accurate? Explain.
CHAPTER 4 Cash Flow and Financial Planning 201
LG 5 P4–16 Pro forma income statement: Scenario analysis Allen Products, Inc., wants to do a
scenario analysis for the coming year. The pessimistic prediction for sales is
$900,000; the most likely amount of sales is $1,125,000; and the optimistic predic-
tion is $1,280,000. Allen’s income statement for the most recent year follows.
a. Use the percent-of-sales method, the income statement for December 31, 2015,
and the sales revenue estimates to develop pessimistic, most likely, and optimistic
pro forma income statements for the coming year.
b. Explain how the percent-of-sales method could result in an overstatement of
profits for the pessimistic case and an understatement of profits for the most
likely and optimistic cases.
c. Restate the pro forma income statements prepared in part a to incorporate the
following assumptions about the 2015 costs:
$250,000 of the cost of goods sold is fixed; the rest is variable.
$180,000 of the operating expenses is fixed; the rest is variable.
All the interest expense is fixed.
d. Compare your findings in part c to your findings in part a. Do your observations
confirm your explanation in part b?
202 PART 2 Financial Tools
LG 5 P4–17 Pro forma balance sheet: Basic Leonard Industries wishes to prepare a pro forma
balance sheet for December 31, 2016. The firm expects 2016 sales to total
$3,000,000. The following information has been gathered:
(1) A minimum cash balance of $50,000 is desired.
(2) Marketable securities are expected to remain unchanged.
(3) Accounts receivable represent 10% of sales.
(4) Inventories represent 12% of sales.
(5) A new machine costing $90,000 will be acquired during 2016. Total deprecia-
tion for the year will be $32,000.
(6) Accounts payable represent 14% of sales.
(7) Accruals, other current liabilities, long-term debt, and common stock are
expected to remain unchanged.
(8) The firm’s net profit margin is 4%, and it expects to pay out $70,000 in cash
dividends during 2016.
(9) The December 31, 2015, balance sheet follows.
a. Use the judgmental approach to prepare a pro forma balance sheet dated
December 31, 2016, for Leonard Industries.
b. How much, if any, additional financing will Leonard Industries require in 2016?
Discuss.
c. Could Leonard Industries adjust its planned 2016 dividend to avoid the situation
described in part b? Explain how.
LG 5 P4–18 Pro forma balance sheet Randy & Wiskers Enterprises reported sales of $15.5 mil-
lion for the 2015 financial year. In order to identify the financial needs for the 2016
financial year, you were requested to compile a pro forma balance sheet. The balance
sheet as of December 31, 2015 (shown on the next page) and other additional infor-
mation are as follows.
Additional information
(1) The balance sheet items vary directly with sales: Accounts receivable (15%), In-
ventory (15%), Accounts payable (10%), and net profit margin (2%).
(2) All other balance sheet items remain unchanged.