STATEMENT AND BALANCE SHEET FOR WEBB ENTERPRISES, FOUND BELOW, AND ESTIMATE THE FIRMS FCF FOR 2011.WHERE REVENUES ARE EXPECTED TO GROW BY 20% IN 2011. MAKE THE FOLLOWING ASSUMPTIONS IN MAKING YOUR FORECAST OF THE FIRMS BALANCE SHEET FOR 2011:A. The income statement expenses are a constant percent of revenues except for interest, which remains equal in dollar amount to the 2010 level, and taxes, which equal 40% of earnings before taxes.B. The cash and marketable securities balance remains equal to $500, and the remaining current asset accounts and fixed assets increase in proportion to revenues for 2010.C. Net property, plant, and equipment increase in proportion to the increase in revenues.D. Accounts payable increase in proportion to firm revenues.E. Owners equity increases by the amount of firm net income for 2011 (no cash dividends are paid).F. Long term debt remains unchanged, and short term debt changes in an amount that balances the balance sheet.BALANCE SHEET 2010CASH AND MARKETABLE SECURITIES $ 500ACCOUNTS RECEIVABLE 6,000INVENTORIES 9,500CURRENT ASSETS 16,000NET PROPERTY PLANT AND EQUIPMENT 17,000TOTAL 33,000ACCOUNTS PAYABLE 7,200SHORT TERM DEBT 6,800CURRENT LIABILITIES 14,000LONG TERM DEBT 7,000TOTAL LIABILITIES 21,000TOTAL OWNERS EQUITY 12,000TOTAL LIABILITIES AND OWNERS EQUITY 33,000INCOME STATEMENT 2010REVENUES 30,000COST OF GOODS SOLD (20,000)GROSS PROFIT 10,000OPERATING EXPENSES (8,000)NET OPERATING INCOME 2,000INTEREST EXPENSE (900)EARNINGS BEFORE TAXES 1,100TAXES (400)NET INCOME 700Please use excel spreadsheet with formulas ...so I can see where I went wrongPart 2USING YOUR PRO FORMA FINANCIAL STATEMENTS FROM THE ABOVE INFORMATION, ESTIMATE THE FIRMS FCF FOR 2011.
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