Consider the following simplified financial statements for the Wims Corporation (assuming no income taxes): Balance Sheet $9,500 Debt $23,000 Assets 14,300 Equity Net income $8,700 Total $ 9,500 Total The company has predicted a sales increase of 11 percent. It has predicted that every item on the balance sheet will increase by 11 percent as well. Create the pro forma statements and reconcile them. What is the plug variable here? Income Statement Sales Costs Multiple Choice $9,195 $9,204 $9,217 $19,612 $9,199 $5,500 4,000 $9,500

Consider the following simplified financial statements for the Wims Corporation (assuming no income taxes): Balance Sheet $9,500 Debt $23,000 Assets 14,300 Equity Net income $8,700 Total $ 9,500 Total The company has predicted a sales increase of 11 percent. It has predicted that every item on the balance sheet will increase by 11 percent as well. Create the pro forma statements and reconcile them. What is the plug variable here? Income Statement Sales Costs Multiple Choice $9,195 $9,204 $9,217 $19,612 $9,199 $5,500 4,000 $9,500

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter3: Analysis Of Financial Statements

Section: Chapter Questions

Problem 15SP

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Consider the following simplified financial statements for the Wims Corporation (assuming no income taxes): Income Statement Sales Costs $ 29,000 Assets 13,500 Net income $15,500 Total $9,800 The company has predicted a sales increase of 12 percent. It has predicted that every item on the balance sheet will increase by 12 percent as well. Create the pro forma statements and reconcile them. What is the plug variable here? Multiple Choice O O O $24,384 $16,655 $16,642 Balance Sheet $9,800 Debt $16,649 $ 4,100 5,700 $9,800 Equity Total
Consider the following simplified financial statements for the Wims Corporation (assuming no income taxes): Income Statement Sales Costs Multiple Choice $ 29,000 Assets 14,000 $ 15,000 Total о Net income $9,400 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? O $16,105 O O $26,760 $16,109 $16,120 Balance Sheet $9,400 Debt $16,101 Equity Total $ 5,600 3,800 $ 9,400
Consider the following simplified financial statements for the Wims Corporation (assuming no income taxes): Balance Sheet $21,000 Assets $10,700 Debt 14,400 Equity Net Income $6,600 Total $ 10,700 Total The company has predicted a sales increase of 11 percent. It has predicted that every Item on the balance sheet will increase by 11 percent as well. Create the pro forma statements and reconcile them. What is the plug variable here? Income Statement Sales Costs Multiple Choice O O $6.714 $6,743 $6,726 $16,949 $6,720 $ 5,400 5,300 $10,700
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Problem #1: Proforma Statements Prepare a common size income statement given the following information: Revenues = $100,000 COGS = $43,000 SG&A = $22,000 Interest Owed = $5,000 Tax Rate = 40% Problem #2: Proforma Statements Prepare a pro forma income statement from the data and common size income statement from #1, assuming that the sales will grow by 5% and all expenses but interest and taxes will scale with sales. 1, Use your plan of action to solve each problem, clearly outlining the procedures used, providing a concise explanation of each step, labeling relevant formulas, and showing worked out calculations and complete solutions. You may use an Excel spreadsheet or a calculator to help you perform the necessary calculations, but all corresponding work must be shown completely. 2. Answer all questions posed in the problem; if applicable, analyze and evaluate your results and provide a contextual explanation of the solutions you obtained. 3. Review your…
Please answer very fast then i ll upvote Calculate EBIT. Revenue 1,061,751.0 Cost of sales 690,135.0 Selling, general and administration 53,087.0 Other income 11,796.0 Operating income 330,325.0 Interest expense 19,874.0 Profit before tax 310,451.0 Tax expense 46,500.0 Net income 263,951.0 The footnotes mention the following: Cost of sales includes inventory write off costs 39,677.0 Cost of sales includes distribution costs 120,458.0 SG&A includes corporate restructuring expenses 15,570.0 Responses 385,572.0 275,078.0 330,325.0 506,030.0
Consider the following simplified financial statements for the Wesney Corporation (assuming no income taxes): Income Statement Sales Costs $ 30,900 23,060 Net income $7,840 Total Assets Sales Costs Net income Pro forma income statement Balance Sheet $ Debt 25,450 Equity The plug variable is $ 25,450 The company has predicted a sales increase of 12 percent. It has predicted that every item on the balance sheet will increase by 12 percent as well. Assets Create the pro forma statements and reconcile them. (Input all answers as positive values. Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) Total Total Assets $ 6,950 18,500 $ 25,450 in the amount of What is the plug variable? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Pro forma balance sheet Debt Equity Total Debt and Equity
Consider the following income statement for Jordan Corporation:Jordan CorporationIncome Statement Sales₱ 38,000 Costs18,400 Taxable Income₱19,600 Taxes (34%)6,664 Net Income₱12,936 Dividends₱5,200 Addition to Retained Earnings7,736 A 25% growth rate in sales is projected. Prepare a pro forma income statement assuming costs vary with sales and the dividend payout ratio is constant. What is the projected addition to retained earnings?
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A. Wally asks you to create an Income Statement for 2020 using the information below. 1. 2020 sales were 150% of last year’s sales2. Gross profit margin was 55%3. Operating profit margins were 15% 4. Interest expense fell to 7%, given a change in interest rates 5. The tax rate was 30% B. Based on the change in Income between 2020 and 2019, how would you say AndrewCo is doing?
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