Problem 1 (Pro Forma Statements) Consider the following simplified financial statements for the Phillips Corporation assuming no income taxes. Income Statement Statement of Financial Position Sales Costs P23,000 16,700 P 6,300 Assets P15,800 Debt Equity Total P 5,200 10,600 P15,800 Net income Total P15,800 Phillips has predicted a sales increase of 15 percent. It has predicted that every item on the statement of financial position will increase by 15 percent as well. Create the pro forma statements and reconcile them. What is the additional financing needed here.
Problem 1 (Pro Forma Statements) Consider the following simplified financial statements for the Phillips Corporation assuming no income taxes. Income Statement Statement of Financial Position Sales Costs P23,000 16,700 P 6,300 Assets P15,800 Debt Equity Total P 5,200 10,600 P15,800 Net income Total P15,800 Phillips has predicted a sales increase of 15 percent. It has predicted that every item on the statement of financial position will increase by 15 percent as well. Create the pro forma statements and reconcile them. What is the additional financing needed here.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Problem 1 (Pro Forma Statements)
Consider the following simplified financial statements for the Phillips
Corporation assuming no income taxes.
Income Statement
Sales
Statement of Financial Position
P23,000
16,700
P 6,300
Assets
P15,800
P 5,200
10,600
P15,800
Debt
Costs
Net income
Equity
Total
Total
P15,800
Phillips has predicted a sales increase of 15 percent. It has predicted that every
item on the statement of financial position will increase by 15 percent as well.
Create the pro forma statements and reconcile them. What is the additional
financing needed here.
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