Question
Having trouble with this problem. Any help would be appreciated. Thanks Consider the following simplified financial statements for the Yoo Corporation (assuming no income taxes):
Having trouble with this problem. Any help would be appreciated. Thanks
Consider the following simplified financial statements for the Yoo Corporation (assuming no income taxes):
Income Statement Balance Sheet
Sales $36,000 Assets $26,400 Debt $6,300
Costs $29,800 Equity $20,100
Net Income $6,200 $26,400 Total $26,400
The company has predicted a sales increase of 15 percent. It has predicted that every item on the balance sheet will increase by 15 percent as well. Create the pro forma statements and reconcile them. What is the plug variable here?
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Quantitative Investment Analysis
Authors: Richard A. DeFusco, Dennis W. McLeavey, Jerald E. Pinto, David E. Runkle
3rd edition
111910422X, 978-1119104544, 1119104548, 978-1119104223
