Income Statement and Balance Sheet, business and finance homework help

1. 
Using your 2015/2016 Income Statement and
Balance Sheet, add a column for percentage of total.  Compute the percentages for each line item
for the financial statements.  For the 2015
Income Statement, what is the percentage of COGS as compared to total sales? Is
this figure reasonable and what is COGS and why is it important to a company?2015

ICS
Manufacturing Company 

Income Statement for
2015

Sales Revenue 
 35,500,000

Cost of Goods Sold
 12,725,000

Selling, General and Admin Exp
 11,200,000

Depreciation Exp 
 3,200,000

EBIT 
 8,375,000

Interest Expense 
 350,000

Taxable Income 
 8,025,000

Taxes 
 3,210,000

Net Income 
 4,815,000

2016

ICS
Manufacturing Company 

Pro Forma Income
Statement for 2016

Sales Revenue 
 37,346,000

Cost of Goods Sold
 13,297,625

Selling, General and Admin Exp
 11,625,600

Depreciation Exp 
 3,255,000

EBIT 
 9,167,775

Interest Expense 
 375,000

Taxable Income 
 8,792,775

Taxes 
 3,517,110

Net Income 
 5,275,665

ICS
Manufacturing Company 

Balance Sheet for
Year Ending Decemeber 2015

 
 

Assets
 
Liabilities 

Cash
 2,625,000
 
Acounts Payable 
 5,825,000

Accounts Receivable 
 2,715,000
 
Other Current Liabilities 
 3,365,000

Inventories 
 1,514,000
 
Total Current Liabilities 
 9,190,000

Total Current Assets
 6,854,000
 
 

 
 

 
 

Long Term Assets 
 
Long Term Liabilities 

P,P, & E
 12,745,000
 
Long Term Debt
 1,225,000

Goodwill 
 1,205,000
 
Other LT Debt 
 2,230,000

Intangible Assets
 5,275,000
 
Total LT Debt 
 3,455,000

Total LT Assets 
 19,225,000
 
Total Liabilities 
 12,645,000

Total Assets 
 26,079,000
 
 

 
 

 
Owner’s Equity 

 
Common Stock 
 6,425,000

 
Retained Earnings 
 7,009,000

 
Total Owners’ Equity
 13,434,000

 
Total Liab/OE
 26,079,000

 
 

 
 

 
 

ICS Manufacturing
Company 

Pro Forma Balance
Sheet for Year 2016

 
 

Assets
 
Liabilities 

Cash
 2,825,000
 
Acounts Payable 
 5,825,000

Accounts Receivable 
 3,122,250
 
Other Current Liabilities 
 3,365,000

Inventories 
 2,043,900
 
Total Current Liabilities 
 9,190,000

Total Current Assets
 7,991,150
 
 

 
 

 
 

Long Term Assets 
 
Long Term Liabilities 

P,P, & E
 14,745,000
 
Long Term Debt
 3,225,000

Goodwill 
 1,205,000
 
Other LT Debt 
 3,367,150

Intangible Assets
 5,275,000
 
Total LT Debt 
 6,592,150

Total LT Assets 
 21,225,000
 
Total Liabilities 
 15,782,150

Total Assets 
 29,216,150
 
 

 
 

 
Owner’s Equity 

 
Common Stock 
 6,425,000

 
Retained Earnings 
 7,009,000

 
Total Owners’ Equity
 13,434,000

 
Total Liab/OE
 29,216,150

 
 

Difference to balance 
 –
week_5_problem_set_1_3.xlsx

week_5_problem_set_1_3.xlsx

Unformatted Attachment Preview

ICS Manufacturing Company
Income Statement for 2015
Sales Revenue
Cost of Goods Sold
Selling, General and Admin Exp
Depreciation Exp
EBIT
Interest Expense
Taxable Income
Taxes
Net Income
35,500,000
12,725,000
11,200,000
3,200,000
8,375,000
350,000
8,025,000
3,210,000
4,815,000
ICS Manufacturing Company
Pro Forma Income Statement for 2016
Sales Revenue
37,346,000
Cost of Goods Sold
13,297,625
Selling, General and Admin Exp
11,625,600
Depreciation Exp
3,255,000
EBIT
9,167,775
Interest Expense
375,000
Taxable Income
8,792,775
Taxes
3,517,110
Net Income
5,275,665
ICS Manufacturing Company
Balance Sheet for Year Ending Decemeber 2015
Assets
Cash
Accounts Receivable
2,625,000
2,715,000
Liabilities
Acounts Payable
Other Current Liabilities
5,825,000
3,365,000
Inventories
1,514,000
Total Current Liabilities
9,190,000
Total Current Assets
6,854,000
Long Term Liabilities
Long Term Debt
Other LT Debt
1,225,000
2,230,000
Total LT Debt
3,455,000
Long Term Assets
P,P, & E
Goodwill
12,745,000
1,205,000
Intangible Assets
5,275,000
Total LT Assets
19,225,000
Total Assets
26,079,000
Total Liabilities
Owner’s Equity
Common Stock
Retained Earnings
12,645,000
6,425,000
7,009,000
Total Owners’ Equity
13,434,000
Total Liab/OE
26,079,000
ICS Manufacturing Company
Pro Forma Balance Sheet for Year 2016
Assets
Cash
Accounts Receivable
2,825,000
3,122,250
Liabilities
Acounts Payable
Other Current Liabilities
5,825,000
3,365,000
Inventories
2,043,900
Total Current Liabilities
9,190,000
Total Current Assets
7,991,150
Long Term Liabilities
Long Term Debt
Other LT Debt
3,225,000
3,367,150
Total LT Debt
6,592,150
Long Term Assets
P,P, & E
Goodwill
14,745,000
1,205,000
Intangible Assets
5,275,000
Total LT Assets
21,225,000
Total Assets
29,216,150
Total Liabilities
15,782,150
Owner’s Equity
Common Stock
6,425,000
Retained Earnings
Difference to balance
–
7,009,000
Total Owners’ Equity
13,434,000
Total Liab/OE
29,216,150
Future Value = FV (rate, nper, pmt, pv, type)
Rate
Number Payments
PMT
Present Value
Future Value
7.50%
10.00
(400,000.00)
$824,412.62
ICS Manufacturing Company
Income Statement for 2015
Sales Revenue
Cost of Goods Sold
Selling, General and Admin Exp
Depreciation Exp
EBIT
Interest Expense
Taxable Income
Taxes
Net Income
35,500,000
12,725,000
11,200,000
3,200,000
8,375,000
350,000
8,025,000
3,210,000
4,815,000
ICS Manufacturing Company
Pro Forma Income Statement for 2016
Sales Revenue
37,346,000
Cost of Goods Sold
13,297,625
Selling, General and Admin Exp
11,625,600
Depreciation Exp
3,255,000
EBIT
9,167,775
Interest Expense
375,000
Taxable Income
8,792,775
Taxes
3,517,110
Net Income
5,275,665
ICS Manufacturing Company
Balance Sheet for Year Ending Decemeber 2015
Assets
Cash
Accounts Receivable
2,625,000
2,715,000
Liabilities
Acounts Payable
Other Current Liabilities
5,825,000
3,365,000
Inventories
1,514,000
Total Current Liabilities
9,190,000
Total Current Assets
6,854,000
Long Term Liabilities
Long Term Debt
Other LT Debt
1,225,000
2,230,000
Total LT Debt
3,455,000
Long Term Assets
P,P, & E
Goodwill
12,745,000
1,205,000
Intangible Assets
5,275,000
Total LT Assets
19,225,000
Total Assets
26,079,000
Total Liabilities
Owner’s Equity
Common Stock
Retained Earnings
12,645,000
6,425,000
7,009,000
Total Owners’ Equity
13,434,000
Total Liab/OE
26,079,000
ICS Manufacturing Company
Pro Forma Balance Sheet for Year 2016
Assets
Cash
Accounts Receivable
2,825,000
3,122,250
Liabilities
Acounts Payable
Other Current Liabilities
5,825,000
3,365,000
Inventories
2,043,900
Total Current Liabilities
9,190,000
Total Current Assets
7,991,150
Long Term Liabilities
Long Term Debt
Other LT Debt
3,225,000
3,367,150
Total LT Debt
6,592,150
Long Term Assets
P,P, & E
Goodwill
14,745,000
1,205,000
Intangible Assets
5,275,000
Total LT Assets
21,225,000
Total Assets
29,216,150
Total Liabilities
15,782,150
Owner’s Equity
Common Stock
6,425,000
Retained Earnings
Difference to balance
–
7,009,000
Total Owners’ Equity
13,434,000
Total Liab/OE
29,216,150
Future Value = FV (rate, nper, pmt, pv, type)
Rate
Number Payments
PMT
Present Value
Future Value
7.50%
10.00
(400,000.00)
$824,412.62
…
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