Consider the following simplified financial statements for the Wesney Corporation (assuming no income taxes): Income Statement Sales Costs $ Assets $21,900 Debt 45,700 40,100 Equity Net income $ 5,600 Total $ 21,900 Total Balance Sheet The company has predicted a sales increase of 6 percent. Assume the company pays out half of net income in the form of a cash dividend. Costs and assets vary with sales, but debt and equity do not. Pro forma income statement Prepare the pro forma statements. (Input all amounts as positive values. Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) Sales Costs Net income $ 5,900 16,000 $ 21,900 Assets Total Assets Pro forma balance sheet Debt Equity Total Debt and Equity What is the external financing needed? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

Consider the following simplified financial statements for the Wesney Corporation (assuming no income taxes): Income Statement Sales Costs $ Assets $21,900 Debt 45,700 40,100 Equity Net income $ 5,600 Total $ 21,900 Total Balance Sheet The company has predicted a sales increase of 6 percent. Assume the company pays out half of net income in the form of a cash dividend. Costs and assets vary with sales, but debt and equity do not. Pro forma income statement Prepare the pro forma statements. (Input all amounts as positive values. Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) Sales Costs Net income $ 5,900 16,000 $ 21,900 Assets Total Assets Pro forma balance sheet Debt Equity Total Debt and Equity What is the external financing needed? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter13: Capital Structure Concepts

Section: Chapter Questions

Problem 6P

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Debtors collection period Current ratioGearing ratioInterest cover