Riverdale Pet Supplies has current Sales of $24,000 and a Profit Margin of 8%. The firm forecasts that sales will increase by 15% while Costs are expected to vary directly with Sales. What is the pro forma Net Income expected to be?
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- Tinsley Plastics manufactures plastic bottles used for beverages and household cleaners. The average net book value (NBV) of assets during the quarter is estimated as $500,000. If the required rateof return is 10% on average assets and the firm wants to have residual income (RI) of $100,000 forthis quarter, what must its profits be?I need help with this financial accounting problem using accurate calculation methods.Consider the following simplified financial statements for the Wims Corporation (assuming no income taxes): Income Statement Sales Costs Net income The company has predicted a sales increase of 11 percent. It has predicted that every item on the balance sheet will increase by 11 percent as well. Create the pro forma statements and reconcilie them. What is the plug variable here? $ 23,000 14,300 $8,700 Total Multiple Choice $9,195 $9,204 $9.217 $19,612 Assets $9,99 Balance Sheet $9,500 Debt Equity $9,500 Total $5,500 4,000 $9,500
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