Consider the following simplified financial statements for Turnbull Inc. - assuming no income taxes. The company...

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Consider the following simplified financial statements for Turnbull Inc. - assuming no income taxes. The company has predicted a sales increase of 15 percent. Assume that Turnbull Inc. pays out half of its net income in the form of a cash dividend. Cost and assets vary with sales, but debt and equity do not. Assets Assets Total Sales Costs Net Income Sales Increase Payout rate Balance Sheet Liabilities $25,300 Debt Equity $ 25,300 Total $ 5,800 $19.500 $ 25.300 Income Statement $ 32,000 24,400 $ 7,600 15% 50% 1. Prepare the Pro Forma Statements for Turnbull Inc. 2. Determine the EFN Consider the following simplified financial statements for Turnbull Inc. - assuming no income taxes. The company has predicted a sales increase of 15 percent. Assume that Turnbull Inc. pays out half of its net income in the form of a cash dividend. Cost and assets vary with sales, but debt and equity do not. Assets Assets Total Sales Costs Net Income Sales Increase Payout rate Balance Sheet Liabilities $25,300 Debt Equity $ 25,300 Total $ 5,800 $19.500 $ 25.300 Income Statement $ 32,000 24,400 $ 7,600 15% 50% 1. Prepare the Pro Forma Statements for Turnbull Inc. 2. Determine the EFN

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