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Consider the following simplified financial statements for the Yoo Corporation (assuming no income taxes): Income Statement Balance Sheet Sales $ 46,500 Assets $ 20,500 Debt
Consider the following simplified financial statements for the Yoo Corporation (assuming no income taxes):
Income Statement | Balance Sheet | ||||||||||
Sales | $ | 46,500 | Assets | $ | 20,500 | Debt | $ | 6,500 | |||
Costs | 38,780 | Equity | 14,000 | ||||||||
Net income | $ | 7,720 | Total | $ | 20,500 | Total | $ | 20,500 | |||
The company has predicted a sales increase of 14 percent. It has predicted that every item on the balance sheet will increase by 14 percent as well. |
Create the pro forma statements and reconcile them. (Input all amounts as positive values. Do not round intermediate calculations.) |
Pro forma income statement | Pro forma balance sheet | |||||||
Sales | $ | Assets | $ | Debt | $ | |||
Costs | Equity | |||||||
Net income | $ | Total | $ | Total | $ | |||
What is the plug variable? |
The plug variable is |
in the amount of $ .
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