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19:10 Percent of sales: Given the data for Cattail Corporation in Problem 19 9, if you assume that all balance sheet items al
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Answer #1
Proforma income statement
Particulars Amount
Sales (1500000*114%) $        1,710,000
Less: Costs (350000*114%) $            399,000
Net income (1710000-1311000) $        1,311,000
Proforma Balance Sheet
Assets Amount Liabilities Amount
Assets $            798,000 Debt $        684,000
(700000*114%) (600000*114%)
Equity $        114,000
(100000*114%)
$            798,000 $        798,000
Cash dividend
Net income 1311000
Less : increase in Equity 14000
(114000-100000)
Cash dividend 1297000
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