Question
Consider the following simplified financial statements for the Yoo Corporation (assuming no income taxes): Income Statement Balance Sheet Sales $ 34,000 Assets $ 26,500 Debt
Consider the following simplified financial statements for the Yoo Corporation (assuming no income taxes): |
Income Statement | Balance Sheet | ||||||||||
Sales | $ | 34,000 | Assets | $ | 26,500 | Debt | $ | 7,000 | |||
Costs | 27,330 | Equity | 19,500 | ||||||||
Net income | $ | 6,670 | Total | $ | 26,500 | Total | $ | 26,500 | |||
The company has predicted a sales increase of 15 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.) |
What is the external financing needed? (Do not round intermediate calculations. Negative amount should be indicated by a minus sign.) |
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