Question
Consider the following simplified financial statements for the Yoo Corporation (assuming no income taxes): Income Statement Balance Sheet Sales $ 46,100 Assets $ 24,300 Debt
Consider the following simplified financial statements for the Yoo Corporation (assuming no income taxes): |
Income Statement |
| Balance Sheet |
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Sales | $ | 46,100 |
| Assets | $ | 24,300 |
| Debt | $ | 6,300 |
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Costs |
| 39,630 |
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| Equity |
| 18,000 |
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Net income | $ | 6,470 |
| Total | $ | 24,300 |
| Total | $ | 24,300 |
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The company has predicted a sales increase of 10 percent. Assume Yoo 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 and round your answers to the nearest whole dollar amount.) |
Pro forma income statement |
| Pro forma balance sheet |
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Sales | $ |
| Assets | $ |
| Debt | $ |
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Costs |
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Net income | $ |
| Total | $ |
| Total | $ |
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What is the external financing needed? (Do not round intermediate calculations. Negative amount should be indicated by a minus sign.) |
External financing needed
Please show every step to solving this problem. Thank you. | $ |
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