Consider the following simplified financial statements for the Wims Corporation (assuming no income taxes): Balance Sheet $21,000 Assets $10,700 Debt 14,400 Equity Net Income $6,600 Total $10,700 Total The company has predicted a sales increase of 11 percent. It has predicted that every Item on the balance sheet will increase by 11 percent as well. Create the pro forma statements and reconcile them. What is the plug variable here? Income Statement Sales Costs Multiple Choice O O O $6.714 $6,743 $6,726 $16,949 $6,720 $ 5,400 5,300 $10,700
Consider the following simplified financial statements for the Wims Corporation (assuming no income taxes): Balance Sheet $21,000 Assets $10,700 Debt 14,400 Equity Net Income $6,600 Total $10,700 Total The company has predicted a sales increase of 11 percent. It has predicted that every Item on the balance sheet will increase by 11 percent as well. Create the pro forma statements and reconcile them. What is the plug variable here? Income Statement Sales Costs Multiple Choice O O O $6.714 $6,743 $6,726 $16,949 $6,720 $ 5,400 5,300 $10,700
Chapter13: Capital Structure Concepts
Section: Chapter Questions
Problem 2P
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