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Business
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Sales Costs Taxable income $28,600 Assets $68,400 Debt $32,500 18,100 Equity 35,900 $ 10,500 Taxes (24%) 2,520 Net income $ 7,980 Total $68,400 Total $68,400 Assets and costs are proportional to sales. Debt and equity are not. A dividend of $3,100 was paid, and the company wishes to maintain a constant payout ratio. Next year's sales are projected to be $33,176.

Sales Costs Taxable income $28,600 Assets $68,400 Debt $32,500 18,100 Equity 35,900 $ 10,500 Taxes (24%) 2,520 Net income $ 7,980 Total $68,400 Total $68,400 Assets and costs are proportional to sales. Debt and equity are not. A dividend of $3,100 was paid, and the company wishes to maintain a constant payout ratio. Next year's sales are projected to be $33,176.

Essentials Of Investments
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
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The most recent financial statements for Cardinal, Inc., are shown here: Income Statement Balance Sheet Sales Assets $68,400 Debt $32,500 Equity 35,900 Costs Taxable income $28,600 18,100 $ 10,500 Taxes (24%) 2,520 Net income $ 7,980 Total $68,400 Total $68,400 Assets and costs are proportional to sales. Debt and equity are not. A dividend of $3,100 was paid, and the company wishes to maintain a constant payout ratio. Next year's sales are projected to be $33,176. What is the external financing needed? (Do not round intermediate calculations.) External financing needed
Transcribed Image Text:The most recent financial statements for Cardinal, Inc., are shown here: Income Statement Balance Sheet Sales Assets $68,400 Debt $32,500 Equity 35,900 Costs Taxable income $28,600 18,100 $ 10,500 Taxes (24%) 2,520 Net income $ 7,980 Total $68,400 Total $68,400 Assets and costs are proportional to sales. Debt and equity are not. A dividend of $3,100 was paid, and the company wishes to maintain a constant payout ratio. Next year's sales are projected to be $33,176. What is the external financing needed? (Do not round intermediate calculations.) External financing needed
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