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Consider the following simplified financial statements (assuming no income tax): Income Statement Balance Sheet Sales $32,800 Assets $25,950 Debt $6,450 Costs 26,290 Equity 19,500 Net
Consider the following simplified financial statements (assuming no income tax):
Income Statement | Balance Sheet | |||||
Sales | $32,800 | Assets | $25,950 | Debt | $6,450 | |
Costs | 26,290 | Equity | 19,500 | |||
Net Income | 6,510 | Total | 25,950 | 25,950 | ||
The company has predicted a sales increase of 12%.
Assume the company pays out 50% 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 using the percentage of sales approach.
What is the Pro Forma Debt?
Round all answers to the nearest whole number.
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