Question
Pro Forma Statements [LO1] Consider the following simplified financial statements for the Yoo Corporation (assuming no income taxes): Income Statement Balance Sheet Sales $35,000 Assets
Pro Forma Statements [LO1] Consider the following simplified financial statements for the Yoo Corporation (assuming no income taxes):
| Income Statement Balance Sheet | |||||
| Sales | $35,000 Assets |
| Debt | $26,400 |
|
| Costs | 29,800 |
| Equity | -0- |
|
| Net Income | $6,200 |
| 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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Management Systems Audit Risk Mitigation
Authors: Mr Indulis L Svikis
1st Edition
B084DGQJJ5, 979-8607031909
