Consider the following simplified financial statements for the Wims Corporation (assuming no income taxes): Income Statement Balance Sheet Sales $ 46,100 Assets $ 24,300 Debt $ 6,300 Costs 39,630 Equity 18,000 Net income $ 6,470 Total $ 24,300 Total $ 24,300 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. (Input all answers as positive values. Do not round intermediate calculations.) Pro forma income statement Pro forma balance sheet Sales $50,710 Assets $26,730 Debt ? Costs 43,593 Equity ? Net income $7,117 Total $26,730 Total $26,730 What is the plug variable? The plug variable is dividends paid in the amount of ?????? .
Consider the following simplified financial statements for the Wims Corporation (assuming no income taxes): Income Statement Balance Sheet Sales $ 46,100 Assets $ 24,300 Debt $ 6,300 Costs 39,630 Equity 18,000 Net income $ 6,470 Total $ 24,300 Total $ 24,300 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. (Input all answers as positive values. Do not round intermediate calculations.) Pro forma income statement Pro forma balance sheet Sales $50,710 Assets $26,730 Debt ? Costs 43,593 Equity ? Net income $7,117 Total $26,730 Total $26,730 What is the plug variable? The plug variable is dividends paid in the amount of ?????? .
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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Consider the following simplified financial statements for the Wims Corporation (assuming no income taxes): |
| Income Statement | |||||||||||
| Sales | $ | 46,100 | Assets | $ | 24,300 | Debt | $ | 6,300 | |||
| Costs | 39,630 | Equity | 18,000 | ||||||||
| Net income | $ | 6,470 | Total | $ | 24,300 | Total | $ | 24,300 | |||
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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. (Input all answers as positive values. Do not round intermediate calculations.) |
|
What is the plug variable?
|
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