he most recent financial statements for Mixton, Incorporated, are shown here: INCOME STATEMENT BALANCE SHEET Debt Equity Total Sales Costs Taxable income Taxes (22%) Net income $ 52,000 42,400 $ 9,600 2,112 $ 7,488 Assets Total $ 115,700 $ 115,700 Answer is complete but not entirely correct. External financing needed $ 11,990 $ 34,500 81,200 $ 115,700 assets and costs are proportional to sales. Debt and equity are not. A dividend of $2,900 was paid, and the company maintain a constant payout ratio. Next year's sales are projected to be $61,360. What is the external financing needed lote: Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.

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
icon
Related questions
Question
The most recent financial statements for Mixton, Incorporated, are shown here:
INCOME STATEMENT
Sales
Costs
Taxable income
Taxes (22%)
Net income
$ 52,000 Assets
42,400
$ 9,600
2,112
$ 7,488
Total
BALANCE SHEET
Debt
Equity
Total
Answer is complete but not entirely correct.
External financing needed s 11,990 X
$ 115,700
$ 115,700
$ 34,500
81,200
$ 115,700
Assets and costs are proportional to sales. Debt and equity are not. A dividend of $2,900 was paid, and the company wishes to
maintain a constant payout ratio. Next year's sales are projected to be $61,360. What is the external financing needed?
Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.
Transcribed Image Text:The most recent financial statements for Mixton, Incorporated, are shown here: INCOME STATEMENT Sales Costs Taxable income Taxes (22%) Net income $ 52,000 Assets 42,400 $ 9,600 2,112 $ 7,488 Total BALANCE SHEET Debt Equity Total Answer is complete but not entirely correct. External financing needed s 11,990 X $ 115,700 $ 115,700 $ 34,500 81,200 $ 115,700 Assets and costs are proportional to sales. Debt and equity are not. A dividend of $2,900 was paid, and the company wishes to maintain a constant payout ratio. Next year's sales are projected to be $61,360. What is the external financing needed? Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 3 images

Blurred answer
Knowledge Booster
Income Statement Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education