Consider the following simplified financial statements for the Wims Corporation (assuming no income taxes): Income Statement Balance
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Question:
Consider the following simplified financial statements for the Wims Corporation (assuming no income taxes): |
Income Statement | Balance Sheet | ||||
Sales | $19,000 | Assets | $9,000 | Debt | $6,000 |
Costs | 13,500 | Equity | 3,000 | ||
Net income | $5,500 | Total | $9,000 | Total | $9,000 |
The company has predicted a sales increase of 8 percent. It has predicted that every item on the balance sheet will increase by 8percent as well. |
Create the pro forma statements and reconcile them. What is the plug variable here? |
Multiple Choice
$5,688
$5,690
$17,220
$5,693
$5,700
Related Book For
Fundamentals Of Corporate Finance
ISBN: 9781265553609
13th Edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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