Cattail Corporation's financial statements for the fiscal year just ended are shown below: Cattail Corporation Financial Statements for Fiscal Year Just Ended ($ thousands) Income Statement Balance Sheet Net sales $1,650 Assets $700 Debt $560 Costs 350 Equity $140 Net income $1,300 Total $700 Total $700 Cattail management expects sales to increase by 18 percent next year. Assume that the financial statement accounts vary directly with changes in sales and that management has no financing plan at this time. Given this information, develop a pro forma income statement for Cattail for the next fiscal year. Cattail Corporation Pro Forma Income Statement ($ thousands) Net sales
Cattail Corporation's financial statements for the fiscal year just ended are shown below: Cattail Corporation Financial Statements for Fiscal Year Just Ended ($ thousands) Income Statement Balance Sheet Net sales $1,650 Assets $700 Debt $560 Costs 350 Equity $140 Net income $1,300 Total $700 Total $700 Cattail management expects sales to increase by 18 percent next year. Assume that the financial statement accounts vary directly with changes in sales and that management has no financing plan at this time. Given this information, develop a pro forma income statement for Cattail for the next fiscal year. Cattail Corporation Pro Forma Income Statement ($ thousands) Net sales
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 38E: Sundahl Companys income statements for the past 2 years are as follows: Refer to the information for...
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