The document contains proforma financial statements including an income statement and balance sheet. It also notes that while net income was $7,130, equity only increased by $3,015. This means dividends of $4,115 must have been paid, reducing the increase in equity.
The document contains proforma financial statements including an income statement and balance sheet. It also notes that while net income was $7,130, equity only increased by $3,015. This means dividends of $4,115 must have been paid, reducing the increase in equity.
The document contains proforma financial statements including an income statement and balance sheet. It also notes that while net income was $7,130, equity only increased by $3,015. This means dividends of $4,115 must have been paid, reducing the increase in equity.
Sales $ 41,400 Assets $ 30,360 Debt $ 7,245 Costs $ 34,270 Equity $ 23,115 Net Income $ 7,130 Total $ 30,360 Total $ 30,360
Requirement 2: Plug Variable
Net income $ 7,130
Increase in equity $ 3,015
Equity should increase by the amount of net income i.e $7,130 but it increased by $3,015 only The Plug variable here is the dividend paid which reduces the equity by the amount of dividend.