Question
Consider the following simplified financial statements for the Wims Corporation (assuming no income taxes): Income StatementBalance SheetSales$38,000Assets$27,300Debt$6,700Costs32,600Equity20,600Net income$5,400Total$27,300Total$27,300 The company has predicted a sales increase
Consider the following simplified financial statements for the Wims Corporation (assuming no income taxes):
Income StatementBalance SheetSales$38,000Assets$27,300Debt$6,700Costs32,600Equity20,600Net income$5,400Total$27,300Total$27,300
The company has predicted a sales increase of 15 percent. Assume Wims 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.)
Determine the external financing needed.
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Principles of Accounting
Authors: Needles, Powers, crosson
11th Edition
1439037744, 978-1133626985, 978-1439037744
