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Consider the following simplified financial statements (assuming no income tax): Income Statement Balance Sheet Sales $39,200 Assets $21,600 Debt $6,600 Costs 32,650 Equity 15,000 Net
Consider the following simplified financial statements (assuming no income tax):
Income Statement | Balance Sheet | |||||
Sales | $39,200 | Assets | $21,600 | Debt | $6,600 | |
Costs | 32,650 | Equity | 15,000 | |||
Net Income | 6,550 | Total | 21,600 | Total | 21,600 | |
The company has predicted a sales increase of 16%.
It has predicted that every item on the income statement and balance sheet will increase by 16% as well.
Create the pro forma statements and answer the following:
What is the Pro Forma Debt?
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