e. What will be the value of this new balancing item?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 12Q: What is future value and what is one example where it might be used?
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12. Using Percentage of Sales. Eagle Sports Supply has the following financial statements.
Assume that Eagle's assets are proportional to its sales. (LO18-2)
INCOME STATEMENT, 2019
Sales
$950
Costs
250
Interest
50
Taxes
150
Net income
$500
BALANCE SHEET, YEAR-END
2018
2019
2018
2019
Assets
$2,700
$3,000
Debt
$ 900
$1,000
Equity
1,800
2,000
$3,000
Total
$2,700
$3,000
Total
$2,700
Transcribed Image Text:12. Using Percentage of Sales. Eagle Sports Supply has the following financial statements. Assume that Eagle's assets are proportional to its sales. (LO18-2) INCOME STATEMENT, 2019 Sales $950 Costs 250 Interest 50 Taxes 150 Net income $500 BALANCE SHEET, YEAR-END 2018 2019 2018 2019 Assets $2,700 $3,000 Debt $ 900 $1,000 Equity 1,800 2,000 $3,000 Total $2,700 $3,000 Total $2,700
e. What will be the value of this new balancing item?
Transcribed Image Text:e. What will be the value of this new balancing item?
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