Problem 1 (Pro Forma Statements)Consider the following simplified financial statements for the PhillipsCorporation assuming no income taxes.Income StatementSalesStatement of Financial PositionP23,00016,700P 6,300AssetsP15,800P 5,20010,600P15,800DebtCostsNet incomeEquityTotalTotalP15,800Phillips has predicted a sales increase of 15 percent. It has predicted that everyitem on the statement of financial position will increase by 15 percent as well.Create the pro forma statements and reconcile them. What is the additionalfinancing needed here.

The income statement is the descriptive format showing the company's incomes and expenditures. With…

Problem 1 (Pro Forma Statements) Consider the following simplified financial statements for the Phillips Corporation assuming no income taxes. Income Statement Statement of Financial Position Sales Costs P23,000 16,700 P 6,300 Assets P15,800 Debt Equity Total P 5,200 10,600 P15,800 Net income Total P15,800 Phillips has predicted a sales increase of 15 percent. It has predicted that every item on the statement of financial position will increase by 15 percent as well. Create the pro forma statements and reconcile them. What is the additional financing needed here.

Problem 1 (Pro Forma Statements) Consider the following simplified financial statements for the Phillips Corporation assuming no income taxes. Income Statement Statement of Financial Position Sales Costs P23,000 16,700 P 6,300 Assets P15,800 Debt Equity Total P 5,200 10,600 P15,800 Net income Total P15,800 Phillips has predicted a sales increase of 15 percent. It has predicted that every item on the statement of financial position will increase by 15 percent as well. Create the pro forma statements and reconcile them. What is the additional financing needed here.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 74E

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