The most recent financial statements for Hornick, Inc., are shown below (assuming no income axes). Assets and costs are proportional to sales. Debt and equity are not. No dividends are paid. Next year's sales are projected to be $8,968. What is the external financing needed? Income statement Sales Costs Net income $ Next year's sales $ 7,600 5,180 2,420 8,968 Assets $ Total $ Balance sheet 21,700 Debt Equity 21,700 Total $ 9,100 12,600 21,700
The most recent financial statements for Hornick, Inc., are shown below (assuming no income axes). Assets and costs are proportional to sales. Debt and equity are not. No dividends are paid. Next year's sales are projected to be $8,968. What is the external financing needed? Income statement Sales Costs Net income $ Next year's sales $ 7,600 5,180 2,420 8,968 Assets $ Total $ Balance sheet 21,700 Debt Equity 21,700 Total $ 9,100 12,600 21,700
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![The most recent financial statements for Hornick, Inc., are shown below (assuming no income
taxes). Assets and costs are proportional to sales. Debt and equity are not. No dividends are paid.
Next year's sales are projected to be $8,968. What is the external financing needed?
Income statement
$
$
Next year's sales $
Sales
Costs
Net income
7,600
5,180
2,420
Sales
Costs
Net income
8,968
Pro forma income statement
External financing
Assets $
Total $
Complete the following analysis. Do not hard code values in your calculations.
Percent increase in sales
Assets
Balance sheet
21,700 Debt
Equity
21,700 Total $
Total
$
Pro forma balance sheet
Debt
Equity
Total
9,100
12,600
21,700
▬▬▬▬](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fab2cae91-b738-4378-9d2b-34dbb8327a9e%2Fe02b797d-2e68-4903-8647-86f5d6116053%2Fsgm82vh_processed.png&w=3840&q=75)
Transcribed Image Text:The most recent financial statements for Hornick, Inc., are shown below (assuming no income
taxes). Assets and costs are proportional to sales. Debt and equity are not. No dividends are paid.
Next year's sales are projected to be $8,968. What is the external financing needed?
Income statement
$
$
Next year's sales $
Sales
Costs
Net income
7,600
5,180
2,420
Sales
Costs
Net income
8,968
Pro forma income statement
External financing
Assets $
Total $
Complete the following analysis. Do not hard code values in your calculations.
Percent increase in sales
Assets
Balance sheet
21,700 Debt
Equity
21,700 Total $
Total
$
Pro forma balance sheet
Debt
Equity
Total
9,100
12,600
21,700
▬▬▬▬
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