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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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Research indicates that when it comes to the diversification-performance relationship, the highest economic performance occurs w
gulaghasi [49]

Answer:

Related diversification strategy.

Explanation:

Related diversification is a business strategy in which a business enter a new industry which has some similarities with a company's existing business industry. The highest economic benefit will be achieved by a business if it enters into related diversification strategy.

3 0
2 years ago
A report that shows the financial picture of a company at a given time and itemizes assets, liabilities, and stockholders' equit
Allisa [31]

Answer:

Balance sheet is the correct answer because it tells about the worth of company, its assets, shareholders funds (Equity) and amount borrowed by the company (Liability). Balance sheet is also known as Statement of Financial Position (SOFP)

All the other options tells about the earnings and costs of the company not about the assets and liabilities of the company.

6 0
3 years ago
2019: Ending inventory was overstated by $30,000 while depreciation expense was overstated by $24,000. 2020: Ending inventory wa
KIM [24]

Answer:

$25,000

Explanation:

The computation of the adjusted balance of retained earning is shown below:

Since the depreciation expense is overstated on 2019 which decreased the earnings so it would be added

Since the  depreciation expense is understated on 2020 which increased the earnings so it would be deducted

And, the ending inventory for 2020 is understated which decreased the earning so it would be added

Therefore, the adjusted balance is

= $24,000 - $4,000 + $5,000

= $25,000

3 0
3 years ago
Ursula wants to buy a $19,000 used car. She has savings of $2,000 plus an $800 trade-in. She wants her monthly payments to be ab
kow [346]

Answer:

Explanation:

Ursula needs $19,000 or in other words FV (Future value)

She has savings of $2000 and trade in of $800 or in other words she has $2800. She needs to borrow $16200 (19000-2800)

Also, she wants monthly payment to be $282. To find which answer fits best, let's check each of them.

A) APR =78% or mothly rate of 78/12 = 6.5%; 48 months

Using financial calculator:

Rate = 6.5%

n = 48

PV = $16200

Find PMT? PMT = 11068

This is not the right answer

B) APR = 78%, monthly rate=6.5%

n = 60

PV = $16200

Find PMT? PMT = 1077.6

This is not the right answer

C) APR = 7.8%; monthly 0.65%

n =72

PV = $16200

Find PMT? PMT = 282.4

This is the correct option

Answer is - C

6 0
3 years ago
Read 2 more answers
The Young Woman's Club of Williams has been operating for seventy-five years as an organization that supports women who stay at
likoan [24]

Answer:

A) a liability.

Explanation:

Probably, the strong culture held by the Young Woman's Club of Williams (YWCW) will be perceived to have a very low tolerance for diversity by the newcomers. It will also prevent the organization from growing in number. That doesn't mean that it will lose affiliates, but the total number of affiliates will not grow according to the growth in Williams's total population.

Since its strong culture will prevent the YWCW from growing and adapting to community changes, it should be considered a liability.

3 0
3 years ago
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