ANALYZING PRO FORMA STATEMENTS 3

Net sales will double over the first two years then it will continue to increase at 10% in

the following years. The cost of revenue is bases on the sales percentage, for example, 60.1%,

other operating expense and selling expenses will increase in the same ratio as sales. Also, there

is an assumption that the company acquired more property, plant, and equipment because of the

expansion. The company feels comfortable with $20,000 as the amount for revolving lines of

credit along with $60,500 for the loans payable to stockholders. The company’s long-term debt

fluctuates over the next five years but does end at a stable number.



1.2



 !"#$

Assets 20XX % of Sale 20X1 20X2 20X3 20X4 20X5

Current Assets

2 %# (3 %(+# %+*)+# %*# %(*%%# %*')#

.. 4."5! &# %'3 +'# +('# +)'# '+%'# '&'+&#

5 +# *(3 +(# +)(# '+(# '&)%(# &*#

"6/ # %%3 '# ('# '# ('# '#

Total Current Assets 69,525.00$ 83,430.00$ 91,773.00$ 100,446.00$ 110,491.00$ 121,036.00$

Fixed Assets +#   # &# )# %%# %+#

Total Assets 369,525.00$ 583,430.00$ 791,773.00$ 1,000,446.00$ 1,210,491.00$ 1,471,036.00$

Liabilies

Current Liabilies

455"7"-" # "/ # # # # #

.. ! # )3 (# ((# &(# &)*(# *&*#

 8-79,:! %# "8 +# '# ''+)# +)# +)#

Total Current Liabilies 40,000.00$ 56,000.00$ 68,600.00$ 67,699.00$ 67,211.00$ 68,010.00$

Long-Term Liabilies

79,:!" '# "8 &+# &''# &''# ''# (%*(#

!.;2 (# "/ (# (# (# (# (#

Total Long-Term Liabilies 10,600.00$ 130,703.00$ 135,924.00$ 135,924.00$ 115,924.00$ 122,086.00$

Total Liabilies 146,000.00$ 186,703.00$ 204,524.00$ 203,623.00$ 183,135.00$ 190,096.00$

Stockholders Equity

.; %# "/ %# %# %# %# %#

"8"9" # "/ # # # # #

4"6"7 %)&# +&&&# (%')# &&*'# %%+# %')'%#

Total Stockholders Equity 223,525.00$ 396,727.00$ 587,249.00$ 796,824.00$ 1,027,355.00$ 1,280,941.00$

Total Liabilies and Stockholders Equity 369,525.00$ 583,430.00$ 791,773.00$ 1,000,447.00$ 1,210,490.00$ 1,471,037.00$