Question
Consider the following simplified financial statements for the Wims Corporation (assuming no income taxes): Income Statement Balance Sheet Sales $24,000 Assets $10,100 Debt $6,100 Costs
| Consider the following simplified financial statements for the Wims Corporation (assuming no income taxes): |
| Income Statement | Balance Sheet | ||||
| Sales | $24,000 | Assets | $10,100 | Debt | $6,100 |
| Costs | 14,400 | Equity | 4,000 | ||
| Net income | $9,600 | Total | $10,100 | Total | $10,100 |
| 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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ISE Analysis For Financial Management
Authors: Robert C. Higgins Professor, Jennifer Koski
13th International Edition
1265042632, 9781265042639
