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
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 4TP: You are considering two possible companies for investment purposes. The following data is available...
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