1. 1.

Pro forma statements [LO 4.1] Consider the following simplified financial statements for the Wims Company (assuming no income taxes):

1. The company has predicted a sales increase of 15 per cent. It has predicted that every item on the statement of financial position will increase by 15 per cent as well. Create the pro forma statements and reconcile them. What is the plug variable here?

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Statement of profit or loss Statement of financial position Revenue $38000 Assets $27300 Debt $ 6700 Expenses 32.600 Equity 20600 Profit for $ 5400 Total $27 300 Total $27300 the year