Business, 24.07.2020 18:01 jaylabeatty44

Consider the following simplified financial statements for the Wims Corporation (assuming no income taxes): Income Statement Balance Sheet
Sales $38,000 Assets $27,300 Debt $6,700
Costs 32,600 Equity 20,600
Net income $5,400 Total $27,300 Total $27,300

The company has predicted a sales increase of 20 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.

a. Prepare the pro forma statements.
b. Determine the external financing needed.

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Consider the following simplified financial statements for the Wims Corporation (assuming no income...