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

 

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Consider the following simplified financial statements for the Wims Corporation (assuming no income taxes): Income Statement Balance Sheet Sales $23,000 Assets $10,600 Debt $4,600 Costs 13,500 Equity 6,000 Net income $9,500 Total $10,600 Total $10,600 The company 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? Consider the following simplified financial statements for the Wims Corporation (assuming no income taxes): Income Statement Balance Sheet Sales $23,000 Assets $10,600 Debt $4,600 Costs 13,500 Equity 6,000 Net income $9,500 Total $10,600 Total $10,600 The company 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?

Answer rating: 100% (QA)

Proforma Income Statement Sales 23000 110 25300 Costs 13500 110 14850 Net Inc... View the full answer