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?

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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 11 months ago

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