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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Subject :- Accounting
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