Question
In: Statistics and Probability
Consider the following simplified financial statements for the Fire Corporation (assuming no income taxes): Income Statement...
Consider the following simplified financial statements for the Fire Corporation (assuming no income taxes):
| Income Statement | |
| Sales | $38318 |
| Costs | $24483 |
| Balance Sheet | |||
| Assets | $56924 | Debt | $37803 |
| Equity | ? | ||
The company has predicted a sales increase of 14 percent. It has predicted that every item on the balance sheet will increase by 14 percent as well.
What is the pro forma net income?
Solutions
Expert Solution
answer:
given data,
- the sales is $38318
- the costs is $24483
- the predicted sales are increase is 14 %
- the balance sheet will increase is 14 %
to find the pro forma of the net income is ....?
the
probability is shown in the below step by step,
here we are
know as the values is already,
now we are
know as the formula is
the pro
forma net income ( sales *
increase % ) - ( costs * increase % )
now
substitute the values in the above formula
( 38318 *
1.4 ) - ( 24483 * 1.4 )
53645.2 -
34276.2
19369.0
therefore
the 19369
so finally the pro forma of the net income is 19369
| 19369 |
orchestra answered 1 year agoRelated Solutions
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?
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Phillips has
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$15,000
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$14,981
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Net
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$
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$
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Total
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24,300
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Debt
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Costs
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Equity
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Start of Year
Assets
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Other expenses
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Depreciation
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