Toy World, Inc.

Pro Forma Balance Sheets Under Level Production, 1994

(thousand of dollars)

Jan. Feb. Mar. Apr.

Cash $620.11 $805.78 $200.00 $200.00

Accounts receivable $1,060.00 $260.00 $300.00 $300.00
Inventory $1,050.38 $1,501.74 $1,940.08 $2,391.44
Current assets $2,730.49 $2,567.52 $2,440.08 $2,891.44
Net plant and equipment $1,176.00 $1,176.00 $1,176.00 $1,176.00
Total assets $3,906.49 $3,743.52 $3,616.08 $4,067.44

Accounts payable $250.00 $250.00 $250.00 $250.00

Notes payable, bank $0.00 $0.00 $116.14 $767.26
Accrued taxes $27.99 -$27.42 -$168.32 -$259.34
Long-term debt, current portion $50.00 $50.00 $50.00 $50.00
Current liabilities $327.99 $272.58 $247.82 $807.92
Long-term debt $400.00 $400.00 $400.00 $400.00
Shareholders' equity $3,178.50 $3,070.94 $2,968.26 $2,859.52
Total liabilities and equity $3,906.49 $3,743.52 $3,616.08 $4,067.44
check $0.00 $0.00 $0.00 $0.00

Notes:
Accounts receivable - Sales of the last two months
Net plant and equipment - Equal to depreciation expense
Accounts payable - 30% of sales ($3,000,000/12) = $250,000 per month
Notes payable - Balancing figure
Long-term debt (current portion) - $50
Long-term debt - $400 as of December 1993, with $25 being paid off every June and D
Shareholders' equity - Beginning equity + net income (loss) per month

Sensitivity: LNT Construction Internal Use

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 May June July Aug. Sept. Oct. Nov.

$200.00 $200.00 $200.00 $200.00 $200.00 $200.00 $200.00

$280.00 $280.00 $300.00 $1,780.00 $3,460.00 $3,980.00 $4,425.00
$2,842.80 $3,294.16 $3,732.50 $3,220.38 $2,565.04 $1,714.40 $769.37
$3,322.80 $3,774.16 $4,232.50 $5,200.38 $6,225.04 $5,894.40 $5,394.37
$1,176.00 $1,176.00 $1,176.00 $1,176.00 $1,176.00 $1,176.00 $1,176.00
$4,498.80 $4,950.16 $5,408.50 $6,376.38 $7,401.04 $7,070.40 $6,570.37

$250.00 $250.00 $250.00 $250.00 $250.00 $250.00 $250.00

$1,368.27 $2,053.79 $2,684.08 $3,319.10 $3,973.88 $3,138.58 $2,077.01
-$317.02 -$411.23 -$469.70 -$356.52 -$253.87 -$82.28 $108.64
$50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00
$1,351.25 $1,942.56 $2,514.38 $3,262.58 $4,020.01 $3,356.30 $2,485.65
$400.00 $375.00 $375.00 $375.00 $375.00 $375.00 $375.00
$2,747.55 $2,632.61 $2,519.12 $2,738.80 $3,006.02 $3,339.10 $3,709.72
$4,498.80 $4,950.16 $5,408.50 $6,376.38 $7,401.04 $7,070.40 $6,570.37
$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

epreciation expense
,000,000/12) = $250,000 per month

er 1993, with $25 being paid off every June and December
ity + net income (loss) per month

Sensitivity: LNT Construction Internal Use

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 Dec.

$200.00
$3,400.00
$586.00
$4,186.00
$1,176.00
$5,362.00

$250.00
$767.47
$128.44
$50.00
$1,195.91
$350.00
$3,816.09
$5,362.00
$0.00

Sensitivity: LNT Construction Internal Use

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