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

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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