Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Consider the following simplified financial statements for the Wesney Corporation (assuming no income taxes): Income Statement Sales $ 39,400 Assets Costs 34.700 Balance Sheet $

image text in transcribed
image text in transcribed
Consider the following simplified financial statements for the Wesney Corporation (assuming no income taxes): Income Statement Sales $ 39,400 Assets Costs 34.700 Balance Sheet $ 29,200 Debt Equity $9.400 19,800 Net income $ 4700 Total $29.200 Total $ 29,200 The company has predicted a sales increase of 15 percent. Assume Wesney pays out half 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. (Input all amounts as positive values. Do not round Intermediate calculations and round your answers to the nearest whole number, e.g. 32.) Pro forma income statement Sales Assets $ $ Costs 45,310 39,905 5,405 Pro forma balance sheet 33,580 Debt Equity 33,580 Total Debt and Equity 9.400 22 503 31.903 Net income $ Total Assets $ $ assets vary with sales, but Prepare the pro forma statements. (Input all amounts as positive values. Do not round intermediate calculations and round your answers to the nearest whole number, e.g. 32.) Pro forma income statement Sales Costs 45 310 Assets $ $ Net income Pro forma balance sheet 33,580 Debt Equity 33,580 Total Debt and Equity 39,905 5.405 S Total Assets $ 9.400 22,503 31 903 $ Determine the external financing needed. (Input all amounts as positive values. Do not round intermediate calculations and round your answer to the nearest whole number, e.g. 32.) External financing needed $ 1,677

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Asset Management And Institutional Investors

Authors: Ignazio Basile, Pierpaolo Ferrari

1st Edition

331932795X,3319327968

More Books

Students also viewed these Finance questions

Question

6. When do you use and R charts versus and s-charts?

Answered: 1 week ago