Consider the following simplified financial statements for the Yoo Corporation. Assumethere are no income taxes and the company pays out half of net income in the form of acash dividend. Costs and assets vary with sales, but debt and equity do not. Prepare thepro forma statements and determine the external financing needed.Income statement$SalesCostsNet incomeSales increasePayout rate36,00029,800$ 6,200DividendsALL15%50%Pro forma income statementSalesCostsNet incomeBalance sheet26,400 DebtEquityTotal $ 26,400 TotalAssets $Complete the following analysis. Do not hard code values in your calculations.Pro forma balance sheetDebtAssetsTotalEquityTotal$External financing needed$6,30020,10026,400

When the company has taken borrowings from third parties or financial agencies in order to fulfill…

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

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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