$7,812. What is the external financing needed? (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to the nearest whole number.)
$7,812. What is the external financing needed? (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to the nearest whole number.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
Transcribed Image Text:The most recent financial statements for Bradley, Inc., are shown here (assuming no income taxes):
Income Statement
$6,200
-3,720
Sales
Costs
Net income
$2,480
Balance Sheet
$17,360
$9,100
8,260
Assets
Debt
Equity
Total
$17,360
Total
$17,360
Assets and costs are proportional to sales. Debt and equity are not. No dividends are paid. Next year's sales are projected to be
$7,812. What is the external financing needed? (A negative value should be indicated by a minus sign. Do not round intermediate
calculations. Round your answer to the nearest whole number.)
EFN
Expert Solution
Step 1
External Financing:
External Financing refers to the financing taken by the business outside the firm. External financing includes loans from banks, the sale of company shares, etc.
External Financing is usually done to increase the level of revenues by increasing the purchase of assets.
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