The Balance Sheet of the James Group Is Presented Below

question 79

Essay

The balance sheet of the James Group is presented below:
James Group Balance Sheet
March 31, 2017
(Millions of Dollars)
For the year ending March 31, 2017, James had sales of $35 million.The common stockholders received all net earnings of the firm in the form of cash dividends, leaving no funds from earnings available to the firm for expansion (assume that depreciation expense is just equal to the cost of replacing worn-out assets).
Construct a pro forma balance sheet for March 31, 2018, for an expected level of sales of $45 million.Assume current assets and accounts payable vary as a percent of sales, and fixed assets remain at the present level.Use notes payable as a source of discretionary financing.

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Definitions:

Completed Polypeptide Chain

A sequence of amino acids linked by peptide bonds, forming a protein molecule after translation and folding processes are completed.

Ribosome

A cell organelle that functions as the site of protein synthesis in the cytoplasm.

Stop Codon

A nucleotide triplet within mRNA that signals the termination of protein synthesis during translation.

Protein Synthesis

The biological process by which cells generate new proteins, translating genetic information from RNA into the amino acid sequence of proteins.