Question
Consider the following simplified financial statements for the Wims Corporation (assuming no income taxes): Income Statement Balance Sheet Sales $ 28,000 Assets $ 9,600 Debt
| Consider the following simplified financial statements for the Wims Corporation (assuming no income taxes): |
| Income Statement | Balance Sheet | ||||
|---|---|---|---|---|---|
| Sales | $ 28,000 | Assets | $ 9,600 | Debt | $ 4,700 |
| Costs | 14,400 | Equity | 4,900 | ||
| Net income | $ 13,600 | Total | $ 9,600 | Total | $ 9,600 |
| The company has predicted a sales increase of 11 percent. It has predicted that every item on the balance sheet will increase by 11 percent as well. |
| Create the pro forma statements and reconcile them. What is the plug variable here? |
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Capital And Finance
Authors: Peter Lewin, Nicolás Cachanosky
1st Edition
0367514559, 978-0367514556
