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Problem 4-2 Pro Forma Statements and EFN [LO1, 2]
The company has predicted a sales increase of 14 percent. Assume the company pays out half of
net income in the form of a cash dividend. Costs and assets vary with sales, but debt and equity
do not.
Prepare the pro forma statements. (Input all amounts as positive values. Do not round
intermediate calculations and round your answers to the nearest whole number, e.g., 32.)
What is the external financing needed? (A negative answer should be indicated by a minus
sign. Do not round intermediate calculations and round your answer to the nearest whole
number, e.g., 32.)
Consider the following simplified financial statements for the Wesney Corporation (assuming no
income taxes):

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Problem 42 Pro Forma Statements and EFN LO1 2 The co.pdf

  • 1. Problem 4-2 Pro Forma Statements and EFN [LO1, 2] The company has predicted a sales increase of 14 percent. Assume the company pays out half of net income in the form of a cash dividend. Costs and assets vary with sales, but debt and equity do not. Prepare the pro forma statements. (Input all amounts as positive values. Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) What is the external financing needed? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Consider the following simplified financial statements for the Wesney Corporation (assuming no income taxes):