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Consider the following simplified financial statements for the Yoo Corporation (assuming no income taxes) Income Statement Sales Costs Balance Sheet $39,600 Assets $23,800 Debt $6,800
Consider the following simplified financial statements for the Yoo Corporation (assuming no income taxes) Income Statement Sales Costs Balance Sheet $39,600 Assets $23,800 Debt $6,800 17,000 31,800 Equity Net income $ 7,800 Total $23,800 Total $23,800 The company has predicted a sales increase of 20 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 $ 47520 Assets $ 28560 Debt $6800 Sales Costs 38160 UI Net income $ 9360 Total $ 28560 Total What is the external financing needed? (Do not round intermediate calculations. Negative amount should be indicated by a minus sign.) External financing needed 80
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