Consider the following simplified financial statements for the Wims Corporation(assuming no income taxes)Balance Sheet$10.100 DebtEquityincome StatementSales$25,000Assets$5,800Costs12.9004,300Net income$ 12.100 Total$ 10100Total$ 10100The company has predicted a sales increase of 12 percent It has predicted that everyitem on the balance sheet will increase by 12 percent as well.Create the pro forma statements and reconcile them What is the plug variable here?Multiple Choice$13.010$13.015O s13.021$23.940$13.036

Pro forma Income Statement Sales ($25,000 * 112%) $28,000 Costs ($12,900 * 112%) $14,448 Net…

Consider the following simplified financial statements for the Wims Corporation (assuming no income taxes) Income Statement Balance Sheet $ 10.100 Debt Equity $ 10100 Total The company has predicted a sales increase of 12 percent It has predicted that every Sales $25,000 Assets $5.800 Costs 12.900 4,300 Net income $12100 Total $10100 item on the balance sheet will increase by 12 percent as well Create the pro forma statements and reconcile them. What is the plug variable here?

Consider the following simplified financial statements for the Wims Corporation (assuming no income taxes) Income Statement Balance Sheet $ 10.100 Debt Equity $ 10100 Total The company has predicted a sales increase of 12 percent It has predicted that every Sales $25,000 Assets $5.800 Costs 12.900 4,300 Net income $12100 Total $10100 item on the balance sheet will increase by 12 percent as well Create the pro forma statements and reconcile them. What is the plug variable here?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 2P

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