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Chapter 4:3. Fire Corp financial statements:Pro forma income statementPro forma balance sheetSales$ 32,000Assets$25,300Debt$ 5,800Costs$ 24,400________Equity$ 19,500Net income$ 7,600Total$25,300Total$ 25,300It expects 15% sales increase. It also predicts every item onthe balance sheet will increaseby 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, cost and assetsvary with sales, but not debt and equity, what’s the EFN?
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