The FINC 5000 Associates Corporation (FAC) has begun selling a new product and they want you to help them with next year’s pro forma financial statements. Using the worksheet, complete the company’s forecast.

The finc 5000 associates corporation (fac)

FINC 5000 Associates Corporation (FAC) has begun selling a new product and is looking to create pro forma financial statements for the coming year. The worksheet provided contains all of the information necessary in order to accurately forecast their performance, such as projected sales figures, cost of goods sold, operating expenses and taxes.

In terms of sales, FAC is expecting an increase from last year’s total of $200 000 to $220 000; this includes both net sales revenue and returns but excludes freight costs which are expected to remain constant. Cost of Goods Sold should also increase slightly due to inflation while Operating Expenses are likely to stay relatively stable.

As far as taxation goes, FAC anticipates that its tax rate will remain unchanged at 25%. Finally, based on these calculations it appears that FINC 5000 Associates Corporation can expect a healthy profit margin for the coming year with a Net Income figure estimated at $50 400.

In conclusion it can be seen that by providing accurate data and making careful assumptions around future trends FAC have been able to produce reliable pro forma financial statements which can be used as the basis for further forecasting activities going forward – this should give them greater insight into their current operations so they can plan ahead more effectively over time.