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Provide students with a basic understanding of financial management, goal of the firm, and the basic financial statements. Students should be able to calculate and analyze solvency, liquidity, profitability and market value ratios, and create proforma financial statements.

Prepare in Microsoft Excel or Word.

Pro Forma Statements [LO1] Consider the following simplified financial statements for the Yoo Corporation (assuming no income taxes):

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?

Income Statement Balance Sheet $6,300 20,100 $26.400 $26,400 Debt Sales Costs $36,000 Assets 29,800 Equity $2,400 Total Net income 6,200 Total