Prepare a pro forma income statement and balance sheet

for #2904
Prepare a pro forma income statement and balance sheet for Webb Enterprises Where
revenues are expected to grow by 20% in 2016. Make the following assumptions in making your
forecast of the firm’s balance sheet for 2016:The income statement expenses are a constant
percentage of revenues except for interest, which remains equal in dollar amount to the 2015
level, and taxes, which equal 40% of earnings before taxes. The cash and marketable securities
balance remains equal to $ 500, and the remaining current asset accounts increase in
proportion to revenues for 2015. Net property, plant, and equipment increase in proportion to
the increase in revenues and depreciation expenses for 2016 is $ 2,000. Accounts payable
increases in proportion to firm revenues.Owners’ equity increases by the amount of firm net
income for 2011 (no cash dividends are paid). Long-term debt remains unchanged, and short-
term debt changes in an amount that balances the balance sheet.View Solution:
Prepare a pro forma income statement and balance sheet for

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