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Consider the following simplified financial statements for the Wims Corporation (assuming no income taxes): Income Statement Balance Sheet Sales $19,000 Assets $9,000 Debt $6,000 Costs
Consider the following simplified financial statements for the Wims Corporation (assuming no income taxes): |
Income Statement | Balance Sheet | ||||
Sales | $19,000 | Assets | $9,000 | Debt | $6,000 |
Costs | 13,500 | Equity | 3,000 | ||
Net income | $5,500 | Total | $9,000 | Total | $9,000 |
The company has predicted a sales increase of 8 percent. It has predicted that every item on the balance sheet will increase by 8 percent as well. |
Create the pro forma statements and reconcile them. What is the plug variable here? |
Multiple Choice
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$5,688
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$5,690
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$17,220
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$5,693
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$5,700
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