Consider the following simplified financial statements for the Wims Corporation (assuming no income taxes): Income Statement Balance Sheet Sales $ 28,000 Assets $ 9,700 Debt $ 4,600 Costs 13,400 Equity 5,100 Net income $ 14,600 Total $ 9,700 Total $ 9,700 The company has predicted a sales increase of 9 percent. It has predicted that every item on the balance sheet will increase by 9 percent as well. Create the pro forma statements and reconcile them. What is the plug variable here? Multiple Choice $15,455 $15,437 $24,241 $15,441 $15,432
Consider the following simplified financial statements for the Wims Corporation (assuming no income taxes): Income Statement Balance Sheet Sales $ 28,000 Assets $ 9,700 Debt $ 4,600 Costs 13,400 Equity 5,100 Net income $ 14,600 Total $ 9,700 Total $ 9,700 The company has predicted a sales increase of 9 percent. It has predicted that every item on the balance sheet will increase by 9 percent as well. Create the pro forma statements and reconcile them. What is the plug variable here? Multiple Choice $15,455 $15,437 $24,241 $15,441 $15,432
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
| Consider the following simplified financial statements for the Wims Corporation (assuming no income taxes): |
| Income Statement | Balance Sheet | ||||
|---|---|---|---|---|---|
| Sales | $ 28,000 | Assets | $ 9,700 | Debt | $ 4,600 |
| Costs | 13,400 | Equity | 5,100 | ||
| Net income | $ 14,600 | Total | $ 9,700 | Total | $ 9,700 |
| The company has predicted a sales increase of 9 percent. It has predicted that every item on the balance sheet will increase by 9 percent as well. |
| Create the pro forma statements and reconcile them. What is the plug variable here? |
Multiple Choice
$15,455
$15,437
$24,241
$15,441
$15,432
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