Question
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 8percent as well. |
Create the pro forma statements and reconcile them. What is the plug variable here? |
Multiple Choice
$5,688
$5,690
$17,220
$5,693
$5,700
Step by Step Solution
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Step: 1
Income Statement Revenues Sales 19000 8 2052...
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Fundamentals Of Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
13th Edition
1265553602, 978-1265553609
