Edenic Corporation

Pro Forma Balance Sheet

For the Year Ended December 31, 2020

Assets
Current Assets
Cash
Accounts Receivable
Merchandise Inventory
Non-Current Assets

1. Cash
The balance amounting to P60,000 appears in the cash budget.
Cash Balance, Beginning P60,000.00
Add: Expected Cash Receipts P285,600.00
Total Cash Available: P345,600.00
Less: Expected Cash Payments: P176,300.00
Cash Surplus: P169,300.00
Less: Interest Expense on Financing P2,693.00
Investment P6,607.00 P 9,300.00
Budgeted Cash Balance, Ending P75,000.00

2. Accounts Receivable
Accounts Receivable, December 31, 2019 P10,500.00
Add: Planned Sales (From Sales Budget) P247,500.00
Total: P258,000.00
Less: Expected Cash Collections: P225,600.00
(Schedule of expected collections)
Budgeted accounts receivable, December 31, 2020 P32,400.00

3. Merchandise Inventory
180 x P35 = 6,300.00

4. Land- No Acquisition made in 2020

5. Building and Equipment

Building and Equipment, December 31, 2019 P80,000.00
Add: Equipment to be Acquired in the Second Quarter P10,000.00
Equipment to be Acquired in the Third Quarter P15,000.00
Budgeted building and equipment, December 31, 2020 P105,000.00

6. Accounts Payable
Accounts Payable, December 31,2019 P2,000.00
Add: Planned purchases (Direct materials budget) P26,100.00
Total accounts payable P28,100.00
Less: Planned cash payments (Schedule of
expected cash payments) P26,100.00
Budgeted accounts payable, December 31,2020 P2,000.00

7. Income Tax Payable (see Pro Forma Income Statement) P6,197.00

8. Common Stock – (see December 31, 2019 Balance Sheet) P70,000.00

9. Retained Earning
Retained earnings, December 31,2019 P73,000.00
Add: Net Income (Pro Forma Income Statement) P14,460.00
Total: P87,460.00
Less: Planned dividend payments (Cash budget) P14,000.00
Budgeted Retained Earnings December 31, 2020 P73,460.00