Question: Using the financial information for Gerrard Corp. below create the pro forma financial statements and reconcile them assuming no income taxes. Income Statement Balance Sheet

Using the financial information for Gerrard Corp. below create the pro forma financial statements and reconcile them assuming no income taxes.

Income Statement Balance Sheet
Sales $21,000 Assets $9,800 Debt $4,500
Costs 14,200 Equity 5,300
Net income

$6,800

Total

$9,800

Total

$9,800

The company has predicted a sales increase of 8 percent. It has predicted that every item on the balance sheet will increase by 8 percent as well.

Compute the plug variable here?for Gerrard Corp.

Multiple Choice

  • $6,907

  • $15,560

  • $6,920

  • $6,903

  • $6,899

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