Consider the following simplified financial statements for the Wims Corporation (assuming no income taxes): Income Statement Balance Sheet Sales $23,000 Assets $10,900 Debt $4,400 Costs 13,900 Equity 6,500 Net income $9,100 Total $10,900 Total $10,900 The company has predicted a sales increase of 10 percent. It has predicted that every item on the balance sheet will increase by 10 percent as well. Create the pro forma statements and reconcile them. What is the plug variable here?
Consider the following simplified financial statements for the Wims Corporation (assuming no income taxes): Income Statement Balance Sheet Sales $23,000 Assets $10,900 Debt $4,400 Costs 13,900 Equity 6,500 Net income $9,100 Total $10,900 Total $10,900 The company has predicted a sales increase of 10 percent. It has predicted that every item on the balance sheet will increase by 10 percent as well. Create the pro forma statements and reconcile them. What is the plug variable here?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
|
Consider the following simplified financial statements for the Wims Corporation (assuming no income taxes): |
| Income Statement | |||||
| Sales | $23,000 | Assets | $10,900 | Debt | $4,400 |
| Costs | 13,900 | Equity | 6,500 | ||
| Net income |
$9,100 |
Total |
$10,900 |
Total |
$10,900 |
| The company has predicted a sales increase of 10 percent. It has predicted that every item on the balance sheet will increase by 10 percent as well. |
|
Create the pro forma statements and reconcile them. What is the plug variable here? |
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