Question
Consider the following simplified financial statements for the Yoo Corporation (assuming no income taxes): Income Statement Balance Sheet Sales $ 46,100 Assets $ 24,300 Debt
Consider the following simplified financial statements for the Yoo Corporation (assuming no income taxes): |
Income Statement | Balance Sheet | ||||||||||
Sales | $ | 46,100 | Assets | $ | 24,300 | Debt | $ | 6,300 | |||
Costs | 39,630 | Equity | 18,000 | ||||||||
Net income | $ | 6,470 | Total | $ | 24,300 | Total | $ | 24,300 | |||
The company has predicted a sales increase of 10 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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