se the following information to find the external financing needed (EFN): Current sales: $6,000; Current costs: $3,000; Total Assets: $20,000; Total Debt: $8,000; Total equity: $12,000; Projected sales: $9,600. Total assets and costs are proportional to sales. The firm does not plan to distribute any dividends. The level of debt and equity is independent of the level o

se the following information to find the external financing needed (EFN): Current sales: $6,000; Current costs: $3,000; Total Assets: $20,000; Total Debt: $8,000; Total equity: $12,000; Projected sales: $9,600. Total assets and costs are proportional to sales. The firm does not plan to distribute any dividends. The level of debt and equity is independent of the level o

Name: Use the following information to find the external financing needed (E
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Description: Use the following information to find the external financing needed (EFN):Current sales: $6,000; Current costs: $3,000; Total Assets: $20,000; Total Debt: $8,000; Total equity: $12,000; Projected sales: $9,600. Total assets and costs are proportional

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter3: Analysis Of Financial Statements

Section: Chapter Questions

Problem 8P

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H5. Use the following information to find the external financing needed (EFN): Current sales: $6,000; Current costs: $3,000; Total Assets: $20,000; Total Debt: $8,000; Total equity: $12,000; Projected sales: $9,600. Total assets and costs are proportional to sales. The firm does not plan to distribute any dividends. The level of debt and equity is independent of the level of sales. Options: A) $3,200 B) $1,450 C) $8,800 D) $7,200 E) $12,000
A1 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 A B V 1 X Sales Costs Net income ✓ C Income statement $ Sales increase Payout rate fx $ Dividends Add. To RE D 36,000 29,800 6,200 15% 50% Pro forma income statement Sales Costs Net income E F G Assets $ Total $ Assets H Total I Balance sheet 26,400 Debt Equity 26,400 Total Complete the following analysis. Do not hard code values in your calculations. Pro forma balance sheet Debt Equity Total $ External financing needed $ J 6,300 20,100 26,400 K
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