Consider the following simplified financial statements for the Yoo Corporation. Assume there are no income taxes and the company pays out half of net income in the form of a cash dividend. Costs and assets vary with sales, but debt and equity do not. Prepare the pro forma statements and determine the external financing needed. Sales Costs Income statement 36,000 29,800 Net income $ 6,200 Sales increase Payout rate 15% 50% Assets $ Total $ Balance sheet 26,400 Debt Equity 26,400 Total 6,300 20,100 26,400

Consider the following simplified financial statements for the Yoo Corporation. Assume there are no income taxes and the company pays out half of net income in the form of a cash dividend. Costs and assets vary with sales, but debt and equity do not. Prepare the pro forma statements and determine the external financing needed. Sales Costs Income statement 36,000 29,800 Net income $ 6,200 Sales increase Payout rate 15% 50% Assets $ Total $ Balance sheet 26,400 Debt Equity 26,400 Total 6,300 20,100 26,400

Name: A167891011121314151617181920212223242526ABV1XSalesCostsNet income✓CIn
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Description: A167891011121314151617181920212223242526ABV1XSalesCostsNet income✓CIncome statement$Sales increasePayout ratefx$DividendsAdd. To RED36,00029,8006,20015%50%Pro forma income statementSalesCostsNet incomeEFGAssets $Total $AssetsHTotalIBalance sheet26,4

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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