Business, 13.10.2020 05:01, kitttimothy55
Consider the following simplified financial statements for the Wims Corporation (assuming no income taxes):
Income Statement Balance Sheet
Sales $46,500 Assets $20,500 Debt $6,500
Costs 38,780 Equity 14,000
Net income $7,720 Total $20,500 Total $20,500
The company has predicted a sales increase of 14 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.
Required:
Prepare the pro-forma statements.
Answers: 1
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Consider the following simplified financial statements for the Wims Corporation (assuming no income...
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