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#1 and #2 + 1. Forma Statements [LO1] Consider the following simplified...

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Accounting

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+ 1. Forma Statements [LO1] Consider the following simplified financial statements for the Wims Corporation (assuming no income taxes): Income Statement Sales $38,000 Assets Costs 32,600 Net income $ 5,400 Total Balance Sheet $27,300 Debt Equity $27,300 Total $ 6,700 20,600 $27,300 The company has predicted a sales increase of 15 percent. It has predicted that every item on the balance sheet will increase by 15 percent as well. Create the pro forma statements and reconcile them. What is the plug variable here? 2. Pro Forma Statements and EFN [LO1, 2] In Question 1, 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. Prepare the pro forma statements and determine the external financing needed

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