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Consider the following simplified financial statements for the Wims Corporation (assuming no income taxes): Income Statement Balance Sheet Sales $ 47,300 Assets $ 24,900 Debt
Consider the following simplified financial statements for the Wims Corporation (assuming no income taxes): |
Income Statement | Balance Sheet | ||||||||||
Sales | $ | 47,300 | Assets | $ | 24,900 | Debt | $ | 6,900 | |||
Costs | 40,670 | Equity | 18,000 | ||||||||
Net income | $ | 6,630 | Total | $ | 24,900 | Total | $ | 24,900 | |||
The company has predicted a sales increase of 20 percent. Assume the company 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 dollar amount.)
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