Pro Forma Income Statement and Balance Sheet Below is the income statement and balance sheet for Blue Bill Corporation for 2013.

Pro Forma Income Statement and Balance Sheet Below is the income statement and balance sheet for Blue Bill Corporation for 2013. Based on the historical statements additional information provided, construct the firm’s pro forma income statement and balance sheet for 2014. Blue Bill Corporation Income Statement For the year ended 2013 Projected 2012 2013 2014 Revenue $60,000 $63,000 $66,150 Add 5% to 2013 Revenue Cost of goods sold 42,000 44,100 For this answer you would multiply Gross margin 18,000 18,900 SG&A expense 6,000 6,300 For this answer you would multiply Depreciation expense 1,800 2,000 Will increase to $2,200 Earnings Before Interest and Taxes (EBIT) 10,200 10,600 Interest expense 1,500 1,800 Will be $1,900 Taxable income 8,700 8,800 Income Tax Expense 3,045 3,080 Multiply taxable income by 35% tax Net income 5,655 5,720 Dividends 750 800 Will increase to $850 To retained earnings $4,905 $4,920 Additional income statement information: Sales will increase by 5% in 2014 from 2013 levels. Sales and Revenue mean the same t COGS and SG&A will be the average percent of sales for the last 2 years. Multiply Revenue for 2014 by 70% Depreciation expense will increase to $2,200. Interest expense will be $1,900. The tax rate is 35%. Multiply taxable income by 35% tax Dividend payout will increase to $850. Forecasting Cash Budget +