Solve for External financing needed and equity in the second table! Please!! Con
ID: 2645788 • Letter: S
Question
Solve for External financing needed and equity in the second table! Please!!
Consider the following simplified financial statements for the Fire Corporation (assuming no income taxes):
Income statement
Balance Sheet
Sales $39,600
Costs $31,800
Net Income $7,800
Assets $ 23,800
Total $23,800
Debt $6,800
Equity 17,000
Total $23,800
The company has predicted a sales increase of 20 percent. Assume Fire 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. (Round your answers to the nearest whole dollar amount.)
Pro forma income statement
Pro forma balance sheet
Sales $47520
Assets $28560
Debt $6800
Costs $38160
Equity??????
Net Income $9360
Total $28560
Total $28480
Determine the external financing needed. (Negative amount should be indicated by a minus sign.)
External financing needed $ ????????
I also need to the know the equity in the second table
Solve for External financing needed and equity in the second table! Please!!
Consider the following simplified financial statements for the Fire Corporation (assuming no income taxes):
Income statement
Balance Sheet
Sales $39,600
Costs $31,800
Net Income $7,800
Assets $ 23,800
Total $23,800
Debt $6,800
Equity 17,000
Total $23,800
Explanation / Answer
the value of equity in second table= $21,600
the diffrence between total assets and total liabilities is (-80) only. it will be the external funding to equalize the amount.
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