Consider the following simplified financial statements for the Lafferty Ranch Corporation (assuming no income taxes): Lafferty Ranch
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Consider the following simplified financial statements for the Lafferty Ranch Corporation (assuming no income taxes):
Lafferty Ranch has predicted a sales increase of 10 percent. It has predicted that every item on the balance sheet will increase by 10 percent as well. Create the pro forma statements and reconcile them. What is the plug variable here?
Transcribed Image Text:
Income Statement Sales Costs Net income $15,000 11,000 $ 4,000 Assets Total Balance Sheet Debt Equity Total $4,300 $4,300 $2,800 1,500 $4,300
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Related Book For
Fundamentals Of Corporate Finance
ISBN: 9780072553079
6th Edition
Authors: Stephen A. Ross, Randolph Westerfield, Bradford D. Jordan
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