BAY Oger Problems Problem 1 (Pro Forma Statements) Consider the following sumplitied financial statements for the Phillips Corporation ASSERT TH NCTE 1A. Income Statement Statement of Financial Position Setes 923,600 Assets P15 500 Debt ? 5,200 Coss 16,709 Equity 10.600 Neat mcome 8 630) Toral £15209 = Total 715,800 Phillips has predicted a sales increase of 15 percent. It has predicted that every item on the statement of financial position will increase by 15 percent as well. Create the pro forma statements and reconcile them. What is the additional financing needed here. Problem 2 (Calculating EFN) The most recent financial statements for Donald Inc., are shown assuming no income taxes. Income Statement Statement of Financial Position Sales P 6,300 Assets 718,300 Debt 712,400 Cons 300 Equity 5.900 Net income =f 2410 Total =» 18,300 Total £18,300 Assets and costs are proportional to sales. Debt and equity are not. No dividends are paid. Next year's sales are projected to be 97,434. What is the extemal financing needed? Problem 3 (Calculating EFN) Income Statement Statement of Financial Position Sales 19,500 Assets «98,000 Debt. 52,500 Cons 1.000 Equity 45,500 Taxable a P4500 Total £98,000 ‘Total £98,000 Taxes (40%) __ 1,800 Net income £.2.200