Consider the following simplified financial statements for the Wims Corporation (assuming no income taxes): Income...
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Finance
Consider the following simplified financial statements for the Wims Corporation (assuming no income taxes): Income Statement Sales $22,000 Assets Costs 13,000 Net income $9,000 Total Balance Sheet $9,200 Debt Equity $9,200 Total $4,400 4,800 $9,200 The company has predicted a sales increase of 10 percent. It has predicted that every item on the balance sheet, including debt, but excluding equity, will increase by 10 percent as well. Create the pro forma statements and reconcile them. What is the plug variable here (calculate dividend paid)? [Remember, that the balance sheet must balance, so use equity value that achieves it]
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