Problem

Pro Forma Statements [LO1] Consider the following simplified financial statements for the...

Pro Forma Statements [LO1] Consider the following simplified financial statements for the Phillpe Corporation (assuming no income taxes):

Income Statement

Balance Sheet

Sales

$ 23,000

Assets

$ 15,800

Debt

$ 5,200

Costs

16,700

 

 

Equity

10,600

Net income

$ 6,300

Total

$ 15,800

Total

$ 15,800

Phillpe 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?

Step-by-Step Solution

Request Professional Solution

Request Solution!

We need at least 10 more requests to produce the solution.

0 / 10 have requested this problem solution

The more requests, the faster the answer.

Request! (Login Required)


All students who have requested the solution will be notified once they are available.
Add your Solution
Textbook Solutions and Answers Search