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Consider the following simplified financial statements for the Wims Corporation (assuming no income taxes) Income Statement Balance Sheet $ 10.100 Debt Equity $ 10100 Total The company has predicted a sales increase of 12 percent It has predicted that every Sales $25,000 Assets $5.800 Costs 12.900 4,300 Net income $12100 Total $10100 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?

Consider the following simplified financial statements for the Wims Corporation (assuming no income taxes) Income Statement Balance Sheet $ 10.100 Debt Equity $ 10100 Total The company has predicted a sales increase of 12 percent It has predicted that every Sales $25,000 Assets $5.800 Costs 12.900 4,300 Net income $12100 Total $10100 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?

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Consider the following simplified financial statements for the Wims Corporation (assuming no income taxes) Balance Sheet $10.100 Debt Equity income Statement Sales $25,000 Assets $5,800 Costs 12.900 4,300 Net income $ 12.100 Total $ 10100 Total $ 10100 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 $13.010 $13.015 O s13.021 $23.940 $13.036
Transcribed Image Text:Consider the following simplified financial statements for the Wims Corporation (assuming no income taxes) Balance Sheet $10.100 Debt Equity income Statement Sales $25,000 Assets $5,800 Costs 12.900 4,300 Net income $ 12.100 Total $ 10100 Total $ 10100 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 $13.010 $13.015 O s13.021 $23.940 $13.036
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