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?
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- Consider the following simplified financial statements for the Wims Corporation (assuming no income taxes): Income Statement Balance Sheet Sales $ 46,100 Assets $ 24,300 Debt $ 6,300 Costs 39,630 Equity 18,000 Net income $ 6,470 Total $ 24,300 Total $ 24,300 The company has predicted a sales increase of 10 percent. It has predicted that every item on the balance sheet will increase by 10 percent as well. Create the pro forma statements and reconcile them. (Input all answers as positive values. Do not round intermediate calculations.) Pro forma income statement Pro forma balance sheet Sales $50,710 Assets $26,730 Debt ? Costs 43,593 Equity ? Net income $7,117 Total $26,730 Total $26,730 What is the plug variable? The plug variable is dividends paid in the amount of ?????? .Consider the following simplified financial statements for the Wims Corporation (assuming no income taxes): Income Statement Balance Sheet Sales $ 25,000 Assets $ 9,200 Debt $ 4,700 Costs 13,800 Equity 4,500 Net income $ 11,200 Total $ 9,200 Total $ 9,200 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?Consider the following simplified financial statements for the Wims Corporation (assuming no income taxes): Income Statement Balance Sheet Sales $ 21,000 Assets $ 9,000 Debt $ 4,900 Costs 13,800 Equity 4,100 Net income $ 7,200 Total $ 9,000 Total $ 9,000 The company has predicted a sales increase of 10 percent. It has predicted that every item on the balance sheet will increase by 10 percent as well. Create the pro forma statements and reconcile them. What is the plug variable here? Multiple Choice $16,820 $7,494 $7,498 $7,490 $7,510
- Proforma balance sheet for the upcoming year is given. The estimated net income is $2,621.60. If the company is planning pay $500 dividends, what should be the external financing needs (EFN)? Assets $20,972.80 Debt Equity $20,972.80 Total Total Proforma Balance Sheet Multiple Choice O O -$208.8. $208.8. $500. $291.2. -$500. $11,000.00 $10,181.60 $21,181.60Problem 1 (Pro Forma Statements) Consider the following simplified financial statements for the Phillips Corporation assuming no income taxes. Income Statement Sales Statement of Financial Position P23,000 16,700 P 6,300 Assets P15,800 P 5,200 10,600 P15,800 Debt Costs Net income Equity Total 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. Statement of Financial Position Income Statement Sales Debt Equity Total P 5,200 10.600 PI5,800 Assets PI5,800 Costs Net income P23,000 16.700 P 6.300 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.
- From the balance sheet prepare a proforma income statement where revenues can increase by 2% and the firm can borrow at 5.5% BALANCE SHEET 2021 Cash and cash equivalents 280 Receivables 2588 Inventory 2516 Other CA 189 TOTAL CA 5573 Fixed assets 5024 TOTAL ASSETS 10597 Accounts payable 4713 Short term debt 78 TOTAL CL 4790 LT debt 921 Shareh. Equity 4886 TOTAL LIAB. AND SHARH. EQUITY 10597 INCOME STATEMENT 2021 Sales 19418 COGS 13136 Depreciations 354 SG&A 4952 EBIT 976 Interest Expenses 52 Tax 268 Net income 656 Pro-forma statement Pro Forma Forecasts Actual Projected Projected Projected Projected Projected 2021 2022 2023 2024 2025 2026 COGS/REVENUES SGA/SALES INVENTORIES/COGS OTHER CA/SALES AR/SALES AP/COGS SALES/FIXED ASSETS DEPR/ FIXED ASSETS EQUITY/INVESTED CAPITAL ST DEBT/INVESTED…Consider the following simplified financial statements for the Wims Corporation (assuming no income taxes): Income Statement Sales Costs Net income $46,900 41,140 $ 5,760 Balance Sheet Assets $22,700 Debt $ 6,700 Equity 16,000 Sales Costs Net income Total $22,700 Total $22,700 The company has predicted a sales increase of 18 percent. Assume the company pays out half of net income in the form of a cash dividend. Costs and assets vary with sales, ship but debt and equity do not. Prepare the pro forma statements. (Input all amounts as positive values. Do not round intermediate calculations and round your answers to the nearest whole dollar amount.) Pro forma income statement $ 55,342 Assets Total $ $ GA Pro forma balance sheet 26,786 Debt Equity 26,786 TotalProforma balance sheet for the upcoming year is given. The estimated net income is $2,621.60. If the company is planning to pay $500 dividends, what should be the external financing needs (EFN)? Proforma (Balance Sheet Assets $20,972.80 Total $20,972.80 )(Debt $11,000.00 Equity $10,181.60 Total $21,181.60) Multiple Choicea. -$208.8.b. $291.2.c. $208.8.d. $500.e. -$500.
- a firm's financial data shows the following: Equity = $8,000 Debt = $2,000 Re = 12.5% Rd = 6% Tax rate = 30% Calculate the WACCYou are considering two possible companies for investment purposes. The following data is available for each company. Additional Information: Company A: Bad debt estimation percentage using the income statement method is 6%, and the balance sheet method is 10%. The $230,000 in Other Expenses includes all company expenses except Bad Debt Expense. Company B: Bad debt estimation percentage using the income statement method is 6.5%, and the balance sheet method is 8%. The $140,000 in Other Expenses includes all company expenses except Bad Debt Expense. A. Compute the number of days sales in receivables ratio for each company for 2019 and interpret the results (round answers to nearest whole number). B. If Company A changed from the income statement method to the balance sheet method for recognizing bad debt estimation, how would that change net income in 2019? Explain (show calculations). C. If Company B changed from the balance sheet method to the income statement method for recognizing bad debt estimation, how would that change net income in 2019? Explain (show calculations). D. What benefits do each company gain by changing their method of bad debt estimation? E. Which company would you invest in and why? Provide supporting details.Consider the following simplified financial statements for the Phillips corporation assuming no income taxes: income statement: sales $22,000, cost 14,000, net income $8,000, assets: $9,200, total $9,200, Debt $ 4,900, equity 4,300, total $9,200 Phillips has predicted a sales increase of 11 percent. If has predicted that every item on the balance sheet will increase by 11 percent as well. Calculate the dividend paid.