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nirvana33 [79]
3 years ago
12

Consider the following simplified financial statements for the Wims Corporation (assuming no income taxes): Income Statement Bal

ance Sheet Sales $30,500 Assets $23,250 Debt $ 6,750 Costs 23,910 Equity 16,500 Net income $ 6,590 Total $23,250 Total $23,250 The company has predicted a sales increase of 20 percent. It has predicted that every item on the balance sheet will increase by 20 percent as well.Create the pro forma statements and reconcile them. (Input all answers as positive values. Do not round intermediate calculations.)
Business
1 answer:
AURORKA [14]3 years ago
6 0

Answer:

The proforma income statement and balance sheet are found in the attached

Above all,additional financing of $1982  is required to finance the growth of 20%

Explanation:

The additional finance is necessary as the assets required for the additional growth of 20% is worth $27900 while debt plus equity(including the added profit of $1318) only gives $25918,there resulting in shortfall in finance of $1982.

Also, a different source of finance other than debt can be used depending the interest applicable since the amount involved is minute.

Download xlsx
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Ken, a real estate agent, assures Lily that a certain parcel of commercial property fronts on the most highly trafficked street
crimeas [40]

Options :

a. ​mistake.

b. ​opinion.

c. ​an adhesion contract.

d. ​fraud.

Answer: Fraud

Explanation: From the scenario described above, it could be inferred that Ken, the real estate agent used trickery to lure Lily into purchasing the property. Hence, Lily could be said to have been defrauded by Ken who used what Lily needed to trick her into making the purchase because the main specification, that is high traffic, which Ken used to lure Lily was actually false. Fraud remains a grave offence as it could only be carried out by lying, issuing false statement, blackmail, impersonation and other grave offences.

5 0
3 years ago
Fried donuts has sales of $764,900, total assets of $687,300, total equity of $401,300, net income of $68,200, and dividends pai
Tomtit [17]
Internal growth rate = Net income / Total Assets
Net income = $68,200 
Total assets = $687,300
Internal growth rate 
= $68,200 / $687,300
= 0.099228 x 100%
= 9.92 %
Fried Donuts has an internal growth rate of 9.92%.
5 0
3 years ago
The development of a nationwide computerized job bank listing of all job openings would be most likely to reduce: Group of answe
djyliett [7]

The development of a nationwide computerized job bank listing of all job openings would be most likely to reduce cyclical unemployment.

<h3>What is seasonal unemployment?</h3>
  • When the abilities that people in the economy have to provide and the skills that employers need from employees do not match, structural unemployment results.
<h3>What is frictional unemployment?</h3>
  • The time between quitting a job voluntarily and finding another is known as the frictional unemployment period.
<h3>What is natural unemployment?</h3>
  • The lowest rate of unemployment brought on by actual or voluntary economic forces is known as natural unemployment, or the natural rate of unemployment.
  • The number of persons experiencing natural unemployment indicates those who are jobless as a result of the structure of the labor force, such as those who have been displaced by technology or those who lack the necessary skills to find employment.
<h3>What is cyclical unemployment?</h3>
  • The portion of overall unemployment that is specifically caused by cycles of economic expansion and contraction is known as cyclical unemployment.
  • Typically, unemployment increases during economic downturns and decreases during boom times.

Therefore, the development of a nationwide computerized job bank listing of all job openings would be most likely to reduce cyclical unemployment.

Know more about unemployment here:

brainly.com/question/305041

#SPJ4

3 0
1 year ago
What do I put at the end of a brochure
Dima020 [189]

Answer:

Bibliography

Explanation:

6 0
3 years ago
Read 2 more answers
Suppose that Taggart Transcontinental currently has no debt and has an equity cost of capital of 10%. Taggart is considering bor
labwork [276]

Answer:

Option (D) is correct.

Explanation:

We have to use MM proposition that cost of equity will change itself in such a manner so that it can take care of its debt.

Cost of equity:

= WACC of all equity firm + (WACC of all equity - Cost of debt ) × (Debt -to-equity ratio)

At the beginning, when there was no debt,

WACC = cost of equity = 10%

Levered cost of equity:

= 10% + ( 10% - 6%) × 0.2

= 10.8%

Therefore, Taggart's levered cost of equity would be closest to 11%.

8 0
3 years ago
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