Consider the following simplified financial statements for the Yoo Corporation. Assume there are no income taxes...
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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. Sales Costs Income statement $ 36,000 29,800 Net income $ 6,200 Sales increase Payout rate 15% 50% Dividends Add. To RE Assets $ Total $ Assets Balance sheet 26,400 Debt Equity Total 26,400 Total Complete the following analysis. Do not hard code values in your calculations. Pro forma income statement Pro forma balance sheet Debt Sales Costs Net income Equity Total $ External financing needed $ 6,300 20,100 26,400 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. Sales Costs Income statement $ 36,000 29,800 Net income $ 6,200 Sales increase Payout rate 15% 50% Dividends Add. To RE Assets $ Total $ Assets Balance sheet 26,400 Debt Equity Total 26,400 Total Complete the following analysis. Do not hard code values in your calculations. Pro forma income statement Pro forma balance sheet Debt Sales Costs Net income Equity Total $ External financing needed $ 6,300 20,100 26,400
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Related Book For
Fundamentals of Corporate Finance
ISBN: 978-1260153590
12th edition
Authors: Stephen M. Ross, Randolph W Westerfield, Robert R. Dockson, Bradford D Jordan
Posted Date:
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