Problem 4-5 EFN [LO2] The most recent financial statements for Assouad, Inc., are shown here: Income Statement Balance Sheet Sales $ 11,900 Current assets $ 6,000 Current liabilities $ 3,600 Costs 8,500 Fixed assets 10,600 Long-term debt 5,100 Taxable income $ 3,400 Equity 7,900 Taxes (24%) 816 Total $ 16,600 Total $ 16,600 Net income $ 2,584 Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. The company maintains a constant 45 percent dividend payout ratio. As with every other firm in its industry, next year’s sales are projected to increase by exactly 17 percent. What is the external financing needed? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Problem 4-5 EFN [LO2] The most recent financial statements for Assouad, Inc., are shown here: Income Statement Balance Sheet Sales $ 11,900 Current assets $ 6,000 Current liabilities $ 3,600 Costs 8,500 Fixed assets 10,600 Long-term debt 5,100 Taxable income $ 3,400 Equity 7,900 Taxes (24%) 816 Total $ 16,600 Total $ 16,600 Net income $ 2,584 Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. The company maintains a constant 45 percent dividend payout ratio. As with every other firm in its industry, next year’s sales are projected to increase by exactly 17 percent. What is the external financing needed? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Problem 4-5 EFN [LO2]
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The most recent financial statements for Assouad, Inc., are shown here: |
| Income Statement | |||||||||||
| Sales | $ | 11,900 | Current assets | $ | 6,000 | Current liabilities | $ | 3,600 | |||
| Costs | 8,500 | Fixed assets | 10,600 | Long-term debt | 5,100 | ||||||
| Taxable income | $ | 3,400 | Equity | 7,900 | |||||||
| Taxes (24%) | 816 | Total | $ | 16,600 | Total | $ | 16,600 | ||||
| Net income | $ | 2,584 | |||||||||
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Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. The company maintains a constant 45 percent dividend payout ratio. As with every other firm in its industry, next year’s sales are projected to increase by exactly 17 percent. |
|
What is the external financing needed? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
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