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Problem 4-2 Pro Forma Statements and EFN [LO1, 2] Consider the following simplified financial statements for the Wesney Corporation (assuming no income taxes): Income

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Problem 4-2 Pro Forma Statements and EFN [LO1, 2] Consider the following simplified financial statements for the Wesney Corporation (assuming no income taxes): Income Statement Balance Sheet $ Sales Assets $ 21,600 Debt $ 6,600 Costs 39,200 32,650 Equity 15,000 Net income $ 6,550 Total $ 21,600 Total $ 21,600 The company has predicted a sales increase of 16 percent. Assume the company 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 number, e.g., 32.) Sales Costs Pro forma income statement $ 45,472 Assets Net income $ 37,874 7,598 Total Assets Pro forma balance sheet Debt $ 6,600 Equity 15,000 Total Debt and Equity $ 21,600 What is the external financing needed? (A negative answer should be Indicated by a minus sign. Do not round Intermediate calculations and round your answer to the nearest whole number, e.g., 32.) External financing needed

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