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Consider the following simplified financial statements for the Yoo Corporation (assuming n

Consider the following simplified financial statements for the Yoo Corporation (assuming n

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 $   
Abhinav 03-Dec-2019

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