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
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Consider the following simplified financial statements for the Wims Corporation
(assuming no income taxes):
Income Statement
Sales
Costs
Net income
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 reconcilie them. What is the plug variable here?
$ 23,000
14,300
$8,700 Total
Multiple Choice
$9,195
$9,204
$9.217
$19,612
Assets
$9,99
Balance Sheet
$9,500 Debt
Equity
$9,500 Total
$5,500
4,000
$9,500
Transcribed Image Text:Consider the following simplified financial statements for the Wims Corporation (assuming no income taxes): Income Statement Sales Costs Net income 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 reconcilie them. What is the plug variable here? $ 23,000 14,300 $8,700 Total Multiple Choice $9,195 $9,204 $9.217 $19,612 Assets $9,99 Balance Sheet $9,500 Debt Equity $9,500 Total $5,500 4,000 $9,500
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