Posted: April 28th, 2016

Use the percentage-of-sales method to construct a pro forma income statement for 2010?

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26
Sep
Your hospital has the following revenue
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Your hospital has the following revenue for the months of July-September: July $3,000,000 August $2,500,000 September $4,000,000. If 30% of the month’s revenue is collected in the same month, 40% is collected in the second month and 30% is collected in the third month, how much of July’s revenue is collected in August?
26
Sep
An imaging center has the following information
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An imaging center has the following information:

Revenue per test: $225
Variable cost per test: $150
Total fixed costs: $225,000
Estimated number of tests = 3,500

Calculate the total dollar contribution margin dollars and percentage.
26
Sep
Permabilt Corp.
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Permabilt Corp. was incorporated on January 1, 2010, and issued the following stock for cash:
3,600,000 shares of no-par common stock were authorized; 1,050,000 shares were issued on January 1, 2010, at $46 per share.

1,200,000 shares of $100 par value, 10.5% cumulative, preferred stock were authorized, and 420,000 shares were issued on January 1, 2010, at $132 per share.

Net income for the years ended December 31, 2010, 2011, and 2012, was $15,750,000, $22,350,000, and $26,100,000, respectively.

No dividends were declared or paid during 2010 or 2011. However, on December 17, 2012, the board of directors of Permabilt Corp. declared dividends of $37,200,000, payable on February 9, 2013, to holders of record as of January 4, 2013.

Required:
a) Write the entry to show the effects of:
1. The issuance of common stock and preferred stock on January 1, 2010
2. The declaration of dividends on December 17, 2012
3. The payment of dividends on February 9, 2013
b) Of the total amount of dividends declared during 2012, how much will be received by preferred shareholders?
26
Sep
Answer the questions that follow
Categories: Business
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The 2010 sales forecast for Clearwater Development Co. is $150 million. Interest expense will not change in the coming year. Use Clearwater’s 2009 income statement ($ in thousands) presented below to answer the questions that follow:

Clearwater Development Co.
Income Statement
Sales $125,000
Less: Cost of goods sold 80,000
Gross profit $ 45,000
Less: Operating expenses 30,000
Less: Interest 10,000
Pretax profit $ 5,000
Less: Taxes (35%) 1,750
Net income $ 3,250

a. Use the percentage-of-sales method to construct a pro forma income statement for 2010.

b. You learn that 25 percent of the cost of goods sold and operating expense figures for 2009 are fixed costs that will not change in 2010. Reconstruct the pro forma income statement.

c. Compare and contrast the statement prepared in parts (a) and (b). Which statement will likely provide the better estimate of 2010 income? Explain.