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    Financial Management: Creating Pro Forma Statements

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    Consider the following simplified financial statements for the Fire Corporation (assuming no income taxes):

    Income Statement Balance Sheet
    Sales $ 46,900 Assets $ 22,700 Debt $ 6,700
    Costs 41,140 Equity 16,000
    Net income $ 5,760 Total $ 22,700 Total $ 22,700

    The company has predicted a sales increase of 18 percent. It has predicted that every item on the balance sheet will increase by 18 percent as well.

    Create the pro forma statements and reconcile them.

    Pro forma income statement Pro forma balance sheet
    Sales $ Assets $ Debt $
    Costs Equity
    Net income $ Total $ Total $

    What is the plug variable?
    The plug variable is in the amount of $ .

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    https://brainmass.com/business/financial-statements/financial-management-creating-pro-forma-statements-548390

    Solution Preview

    Sales $ 46,900 Assets $ 22,700 Debt $ 6,700
    Costs 41,140 Equity 16,000
    Net income $ 5,760 Total $ 22,700 Total $ 22,700

    Pro forma income statement Pro forma balance sheet
    Sales $ ...

    Solution Summary

    The expert creates pro forma statements for financial management.

    $2.19

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