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  1. business
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  3. consider the following simplified financial statem

Consider the following simplified financial statements for the Yoo Corporation (assuming no income taxes): ...

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Finance

Consider the following simplified financial statements for the Yoo Corporation (assuming no income taxes):

Income Statement Balance Sheet
Sales $ 40,000 Assets $ 26,000 Debt $ 7,000
Costs 34,160 Equity 19,000
Net income $ 5,840 Total $ 26,000 Total $ 26,000

The company has predicted a sales increase of 20 percent. Assume Yoo 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. (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 Pro forma balance sheet
Sales $ Assets $ Debt $
Costs Equity
Net income $ Total $ Total $

What is the external financing needed? (Do not round intermediate calculations. Negative amount should be indicated by a minus sign.)

External financing needed $

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