Chapter 4: 3. Fire Corp financial statements: Pro forma income statement Pro forma balance sheet Sales $ 32,000 Assets $25,300 Debt $ 5,800 Costs $ 24,400 ________ Equity $ ...

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Finance

Chapter 4:
3. Fire Corp financial statements:
Pro forma income statement Pro forma balance sheet
Sales $      32,000 Assets $25,300 Debt $        5,800
Costs $        24,400 ________ Equity $        19,500
Net income $        7,600 Total $25,300 Total $      25,300
It expects 15% sales increase. It also predicts every item onthe balance sheet will increase
by 15% as well.
1.Create the pro forma statements.
2. What’s the plug variable here?
3. If Fire Corp pays half of income as dividend, cost and assetsvary with sales, but not debt and equity, what’s the EFN?

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Chapter 4:3. Fire Corp financial statements:Pro forma income statementPro forma balance sheetSales$ 32,000Assets$25,300Debt$ 5,800Costs$ 24,400________Equity$ 19,500Net income$ 7,600Total$25,300Total$ 25,300It expects 15% sales increase. It also predicts every item onthe balance sheet will increaseby 15% as well.1.Create the pro forma statements.2. What’s the plug variable here?3. If Fire Corp pays half of income as dividend, cost and assetsvary with sales, but not debt and equity, what’s the EFN?

Pro forma income statement			Pro forma balance sheet
Sales	$ 32,000	Assets	$25,300	Debt	$ 5,800
Costs	$ 24,400		________	Equity	$ 19,500
Net income	$ 7,600	Total	$25,300	Total	$ 25,300