Question

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. Create the pro forma statements. What’s the plug variable here?

Answer 1