Chapter 4:
3. Fire Corp financial statements:
Pro forma income statement
Pro forma balance sheet
Sales
$ 32,000
Assets
$25,300
Debt
$ 5,800
Costs
$ 24,400
________
Equity
$ 19,500
Net income
$ 7,600
Total
$25,300
Total
$ 25,300
It expects 15% sales increase. It also predicts every item on
the balance sheet will increase
by 15% as well.
1.Create the pro forma statements.
2. What’s the plug variable here?
3. If Fire Corp pays half of income as dividend,...