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