Problem 1 (Pro Forma Statements)Consider the following simplified financial statements for the PhillipsCorporation assuming no income taxes.Statement of Financial PositionIncome StatementSalesDebtEquityTotalP 5,20010.600PI5,800AssetsPI5,800CostsNet incomeP23,00016.700P 6.300TotalP15.800Phillips has predicted a sales increase of 15 percent. It has predicted that everyitem on the statement of financial position will increase by 15 percent as well.Create the pro forma statements and reconcile them. What is the additionalfinancing needed here.

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Consider the following simplified financial statements for the Phillips Corporation assuming no income taxes. Income Statement Sales Statement of Financial Position PI5,800 P 5,200 10.600 PI5,800 Debt P23,000 16,700 2.6.300 Assets Equity Total Costs Net income Total PI5,800 Phillips has predicted a sales increase of 15 percent. It has predicted that every item on the statement of financial position will increase by 15 percent as well. Create the pro forma statements and reconcile them. What is the additional financing needed here.

Consider the following simplified financial statements for the Phillips Corporation assuming no income taxes. Income Statement Sales Statement of Financial Position PI5,800 P 5,200 10.600 PI5,800 Debt P23,000 16,700 2.6.300 Assets Equity Total Costs Net income Total PI5,800 Phillips has predicted a sales increase of 15 percent. It has predicted that every item on the statement of financial position will increase by 15 percent as well. Create the pro forma statements and reconcile them. What is the additional financing needed here.

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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