Consider the following simplified financial statements for the Yoo Corporation (assuming no income taxes):

Income StatementBalance SheetSales $32,800Assets $25,950Debt $6,450Costs26,290Equity19,500 Net income $6,510Total $25,950Total $25,950

The company has predicted a sales increase of 12 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 statementPro forma balance sheetSales$Assets$Debt$CostsEquityNet income$Total$Total$

What is the external financing needed?(Do not round intermediate calculations. Negative amount should be indicated by a minus sign.)

External financing needed$eBook & Resources

eBook: 4.2. Financial Planning Models: A First LookeBook: 4.4. External Financing and Growth

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