External Financing Needed Assignment
February 18th, 2020
INCOME STATEMENT | BALANCE SHEET | |||||||
Sales | $ | 26,700 | Assets | $ | 119,000 | Debt | $ | 27,800 |
Costs | 16,400 | Equity | 91,200 | |||||
Taxable income | $ | 10,300 | Total | $ | 119,000 | Total | $ | 119,000 |
Taxes (32%) | 3,296 | |||||||
Net income | $ | 7,004 |
Assets and costs are proportional to sales. Debt and equity are not. A dividend of $3,242.8 was paid, and the company wishes to maintain a constant payout ratio. Next year’s sales are projected to be $37,113. What is the external financing needed?Get Finance homework help today