14 00:55:07 Consider the following simplified financial statements for the Wims Corporation (assuming no income taxes): Income Statement Balance Sheet $ 22,000 Assets $10,500 Debt 12,500 Equity Net income $9,500 Total $ 10,500 Total The company has predicted a sales increase of 11 percent. It has predicted that every item on the balance sheet will increase by 11 percent as well. Create the pro forma statements and reconcile them. What is the plug variable here? Sales Costs Multiple Choice $9,910 $19,390 $9,916 $9,940 $9,922 $ 5,000 5,500 $ 10,500
14 00:55:07 Consider the following simplified financial statements for the Wims Corporation (assuming no income taxes): Income Statement Balance Sheet $ 22,000 Assets $10,500 Debt 12,500 Equity Net income $9,500 Total $ 10,500 Total The company has predicted a sales increase of 11 percent. It has predicted that every item on the balance sheet will increase by 11 percent as well. Create the pro forma statements and reconcile them. What is the plug variable here? Sales Costs Multiple Choice $9,910 $19,390 $9,916 $9,940 $9,922 $ 5,000 5,500 $ 10,500
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:14
00:55:07
Consider the following simplified financial statements for the Wims Corporation
(assuming no income taxes):
Income Statement
Sales
$5,000
Costs
5,500
Net income
$ 10,500
$ 10,500
The company has predicted a sales increase of 11 percent. It has predicted that every
item on the balance sheet will increase by 11 percent as well.
Create the pro forma statements and reconcile them. What is the plug variable here?
Multiple Choice
O
O
$ 22,000
12,500
$ 9,500 Total
O
$9,910
$19,390
$9,916
$9,940
Assets
$9,922
Balance Sheet
$ 10,500 Debt
Equity
Total
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