Question
Consider the following simplified financial statements for the Yoo Corporation (assuming no income taxes): Income Statement Balance Sheet Sales $ 39,200 Assets $ 21,600 Debt
Consider the following simplified financial statements for the Yoo Corporation (assuming no income taxes): |
Income Statement | Balance Sheet | ||||||||||
Sales | $ | 39,200 | Assets | $ | 21,600 | Debt | $ | 6,600 | |||
Costs | 32,650 | Equity | 15,000 | ||||||||
Net income | $ | 6,550 | Total | $ | 21,600 | Total | $ | 21,600 | |||
The company has predicted a sales increase of 16 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 | |||||||
Sales | $ | Assets | $ | Debt | $ | |||
Costs | Equity | |||||||
Net 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 | $ |
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