Question: just the 1st question please Chapter 4 - FIN4220 Long-term Financing Planning and Growth Ross, Westerfield Jordan Practice problems 1. Consider the following simplified financial

just the 1st question please
Chapter 4 - FIN4220 Long-term Financing Planning and Growth Ross, Westerfield Jordan Practice problems 1. Consider the following simplified financial statements for the Yoo Corporation (assuming no income taxes). Sales Assets Income Statement $7.200 Costs 4.730 Net income $2,470 Balance Sheet $21,700 Debt Equity $21,700 Total $ 9.100 12,600 $21,700 Total The company has predicted a sale increase of 15 percent. It has predicted that every item on the balance sheet will increase by 15% as well. Create the pro forma statements and reconcile them. What is the plug variable here? 2. Now assume that Yoo Corporation pays out half of its 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 (EFN)
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