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  3. consider the following simplified financial statem

Consider the following simplified financial statements (assuming no income tax): Income...

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Finance

Consider the following simplified financial statements (assuming no income tax):

Income Statement Balance Sheet
Sales $39,200 Assets $21,600 Debt $6,600
Costs 32,650 Equity 15,000
Net Income 6,550 Total 21,600 Total 21,600

The company has predicted a sales increase of 16%.

It has predicted that every item on the income statement and balance sheet will increase by 16% as well.

Create the pro forma statements and answer the following:

For the balance sheet reconciliation, assume that dividends are the plug variable.

What will be the amount of dividends paid?

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