Consider the following simplified financial statements for the Wims Corporation(assuming no income taxes):Income StatementSalesCostsNetincome$46,90041,140$ 5,760Balance SheetAssets $22,700 Debt $ 6,700Equity16,000SalesCostsNet incomeTotal $22,700 Total $22,700The company has predicted a sales increase of 18 percent. Assume the company paysout half of net income in the form of a cash dividend. Costs and assets vary with sales, shipbut debt and equity do not.Prepare the pro forma statements. (Input all amounts as positive values. Do not roundintermediate calculations and round your answers to the nearest whole dollaramount.)Pro forma income statement$55,342 AssetsTotal$$GAPro forma balance sheet26,786 DebtEquity26,786 Total

When the company has taken borrowings from third parties or financial agencies in order to fulfill…

Consider the following simplified financial statements for the Wims Corpor (assuming no income taxes): Income Statement Sales Costs Net income $46,900 41,140 $ 5,760 Assets Balance Sheet $22,700 Debt $ 6,700 Equity 16,000 Total $22,700 Total $22,700

Consider the following simplified financial statements for the Wims Corpor (assuming no income taxes): Income Statement Sales Costs Net income $46,900 41,140 $ 5,760 Assets Balance Sheet $22,700 Debt $ 6,700 Equity 16,000 Total $22,700 Total $22,700

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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