Consider the following simplified financial statements for the Wesney Corporation (assuming no income taxes): Income Statement Sales Costs $ Assets $21,900 Debt 45,700 40,100 Equity Net income $ 5,600 Total $ 21,900 Total Balance Sheet The company has predicted a sales increase of 6 percent. Assume the company pays out half of net income in the form of a cash dividend. Costs and assets vary with sales, but debt and equity do not. Pro forma income statement Prepare the pro forma statements. (Input all amounts as positive values. Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) Sales Costs Net income $ 5,900 16,000 $ 21,900 Assets Total Assets Pro forma balance sheet Debt Equity Total Debt and Equity What is the external financing needed? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
Consider the following simplified financial statements for the Wesney Corporation (assuming no income taxes): Income Statement Sales Costs $ Assets $21,900 Debt 45,700 40,100 Equity Net income $ 5,600 Total $ 21,900 Total Balance Sheet The company has predicted a sales increase of 6 percent. Assume the company pays out half of net income in the form of a cash dividend. Costs and assets vary with sales, but debt and equity do not. Pro forma income statement Prepare the pro forma statements. (Input all amounts as positive values. Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) Sales Costs Net income $ 5,900 16,000 $ 21,900 Assets Total Assets Pro forma balance sheet Debt Equity Total Debt and Equity What is the external financing needed? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
Fundamentals of Financial Management (MindTap Course List)
15th Edition
ISBN:9781337395250
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter4: Analysis Of Financial Statements
Section: Chapter Questions
Problem 15P: RETURN ON EQUITY AND QUICK RATIO Lloyd Inc. has sales of 200,000, a net income of 15,000, and the...
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![Problem 4-2 Pro Forma Statements and EFN [LO1, 2]
Consider the following simplified financial statements for the Wesney Corporation
(assuming no income taxes):
Balance Sheet
$
Assets $21,900 Debt
45,700
40,100
Equity
Net income $5,600 Total $ 21,900 Total
Income Statement
Sales
Costs
The company has predicted a sales increase of 6 percent. Assume the company pays
out half of 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. (Input all amounts as positive values. Do not round
intermediate calculations and round your answers to the nearest whole number, e.g.,
32.)
Pro forma income statement
Sales
Costs
Net income
$ 5,900
16,000
$ 21,900
Assets
Total Assets
Pro forma balance sheet
Debt
Equity
Total Debt and Equity
What is the external financing needed? (A negative answer should be indicated by a
minus sign. Do not round intermediate calculations and round your answer to the
nearest whole number, e.g., 32.)
External financing needed](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdbca41dc-ac4e-4d48-a124-74d4f5a72147%2Ff6a49032-dd98-46e2-a2fc-a523eca0f368%2F25jcrre_processed.png&w=3840&q=75)
Transcribed Image Text:Problem 4-2 Pro Forma Statements and EFN [LO1, 2]
Consider the following simplified financial statements for the Wesney Corporation
(assuming no income taxes):
Balance Sheet
$
Assets $21,900 Debt
45,700
40,100
Equity
Net income $5,600 Total $ 21,900 Total
Income Statement
Sales
Costs
The company has predicted a sales increase of 6 percent. Assume the company pays
out half of 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. (Input all amounts as positive values. Do not round
intermediate calculations and round your answers to the nearest whole number, e.g.,
32.)
Pro forma income statement
Sales
Costs
Net income
$ 5,900
16,000
$ 21,900
Assets
Total Assets
Pro forma balance sheet
Debt
Equity
Total Debt and Equity
What is the external financing needed? (A negative answer should be indicated by a
minus sign. Do not round intermediate calculations and round your answer to the
nearest whole number, e.g., 32.)
External financing needed
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