Hello,

Could you please help me with the assignment?

I do not understand why my answer for the debt is incorrect.

Thanks,

Tariq

Consider the following simplied nancial statements for the Wims Corporation (assuming no income taxes): Income Statement Balance Sheet Sales $38,000 Assets $27,300 Debt $ 6,700 Costs 32,600 Equity 20,600 Net . $ 5,400 Total $27,300 Total $27,300 Income The company has predicted a sales increase of15 percent. Assume Wims pays out half of net income in the form ofa cash dividend. Costs and assets vary with sales, but debt and equity do not. Prepare the pro forma statements. (Input all amounts as positive values. Do not round intermediate calculations.) 9 Answer is complete but not entirely correct. Pro forma income statement Pro forma balance sheet Sales 43,700 0 31,395 0 Debt Costs 37,490 a Net income 6.210 0 31,395 a Total Determine the external financing needed. (Do not round intermediate calculations. A negative answer should be indicated by a minus sign.)