A B D E F G H I J K 1 2 3 Consider the following simplified financial statements for the Yoo Corporation. Assume there are no income taxes and 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. 4 5 6 7 Assets $ $ Income statement Sales $ 36,000 Costs 29,800 Net income $ 6,200 Balance sheet 26,400 Debt Equity 26,400 Total 8 6,300 20,100 26,400 9 Total $ $ 10 11 Sales increase Payout rate 15% 50% 12 13 14 15 Complete the following analysis. Do not hard code values in your calculations. 16 17 18 Assets Pro forma income statement Sales Costs Net income Pro forma balance sheet Debt Equity Total 19 20 Total 21 22 Dividends Add. To RE External financing needed 23 24 25