In Question 1, 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 and determine the external financing needed.

Data from Questions 1

Consider the following simplified financial statements for the Wims Corporation (assuming no income taxes):

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Balance sheet Income statement Sales $27,300 Debt $38,000 Assets $ 6,700 Costs 32,600 Equity Total 20,600 $27,300 Net income Total $ 5,400 $27,300