Cattail Corporation's financial statements for the fiscal year just ended are shown below: Cattail Corporation Financial Statements for Fiscal Year Just Ended ($ thousands) Income Statement Balance Sheet Net sales $1,650 Assets $700 Debt $560 Costs 350 Equity $140 Net income $1,300 Total $700 Total $700 Cattail management expects sales to increase by 18 percent next year. Assume that the financial statement accounts vary directly with changes in sales and that management has no financing plan at this time. Given this information, develop a pro forma income statement for Cattail for the next fiscal year. Cattail Corporation Pro Forma Income Statement ($ thousands) Net sales
Cattail Corporation's financial statements for the fiscal year just ended are shown below: Cattail Corporation Financial Statements for Fiscal Year Just Ended ($ thousands) Income Statement Balance Sheet Net sales $1,650 Assets $700 Debt $560 Costs 350 Equity $140 Net income $1,300 Total $700 Total $700 Cattail management expects sales to increase by 18 percent next year. Assume that the financial statement accounts vary directly with changes in sales and that management has no financing plan at this time. Given this information, develop a pro forma income statement for Cattail for the next fiscal year. Cattail Corporation Pro Forma Income Statement ($ thousands) Net sales
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![Cattail Corporation's financial statements for the fiscal year just ended are shown below:
Cattail Corporation
Financial Statements for Fiscal Year Just Ended ($ thousands)
Income Statement
Balance Sheet
Net sales
$1,650
Assets
$700
Debt
$560
Costs
350
Equity
$140
Net income
$1,300
Total
$700
Total
$700
Cattail management expects sales to increase by 18 percent next year. Assume that the financial statement accounts vary directly with changes in sales and that management has
no financing plan at this time. Given this information, develop a pro forma income statement for Cattail for the next fiscal year.
Cattail Corporation
Pro Forma Income Statement ($ thousands)
Net sales](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1a186b6e-40e1-4eb8-b48b-1392bfdeb382%2F06a09de1-a9b8-4fb1-9ae4-36539216e6be%2F7wnecza_processed.png&w=3840&q=75)
Transcribed Image Text:Cattail Corporation's financial statements for the fiscal year just ended are shown below:
Cattail Corporation
Financial Statements for Fiscal Year Just Ended ($ thousands)
Income Statement
Balance Sheet
Net sales
$1,650
Assets
$700
Debt
$560
Costs
350
Equity
$140
Net income
$1,300
Total
$700
Total
$700
Cattail management expects sales to increase by 18 percent next year. Assume that the financial statement accounts vary directly with changes in sales and that management has
no financing plan at this time. Given this information, develop a pro forma income statement for Cattail for the next fiscal year.
Cattail Corporation
Pro Forma Income Statement ($ thousands)
Net sales
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