Consider the following simplified financial statements for the Wims Corporation (assuming no income taxes): Income Statement Sales Costs $ 29,000 $ 5,600 14,000 3,800 Net income $ 15,000 Total $ 9,400 $ 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? Multiple Choice $26,760 O $16,105 $16,109 O $16.120 $16,101 Balance Sheet $ 9,400 Debt Equity Total Assets

Consider the following simplified financial statements for the Wims Corporation (assuming no income taxes): Income Statement Sales Costs $ 29,000 $ 5,600 14,000 3,800 Net income $ 15,000 Total $ 9,400 $ 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? Multiple Choice $26,760 O $16,105 $16,109 O $16.120 $16,101 Balance Sheet $ 9,400 Debt Equity Total Assets

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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