The most recent financial statements for Assouad, Incorporated, are shown here: Income Statement Sales Costs Taxable income Taxes (21%) Net income $ 4,400 2,200 $2,200 462 $ 1,738 Multiple Choice What is the external financing needed? C $1,074.00 O $1,720.30 Current assets Fixed assets Total $1,482.30 Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. The company maintains a constant 50 percent dividend payout ratio. As with every other firm in its industry, next year's sales are projected to increase by exactly 30 percent. Balance Sheet $3,700 5,800 $ 9,500 Current liabilities Long-term debt Equity Total $ 960 3,580 4,960 $ 9,500
The most recent financial statements for Assouad, Incorporated, are shown here: Income Statement Sales Costs Taxable income Taxes (21%) Net income $ 4,400 2,200 $2,200 462 $ 1,738 Multiple Choice What is the external financing needed? C $1,074.00 O $1,720.30 Current assets Fixed assets Total $1,482.30 Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. The company maintains a constant 50 percent dividend payout ratio. As with every other firm in its industry, next year's sales are projected to increase by exactly 30 percent. Balance Sheet $3,700 5,800 $ 9,500 Current liabilities Long-term debt Equity Total $ 960 3,580 4,960 $ 9,500
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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Transcribed Image Text:The most recent financial statements for Assouad, Incorporated, are shown here:
Income Statement
Sales
$ 4,400
Costs
2,200
Taxable income $2,200
Taxes (21%)
462
$ 1,738
Net income
Multiple Choice
What is the external financing needed?
$1,074.00
Current assets
Fixed assets
$1,720.30
Total
$1,482.30
Balance Sheet
Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity
are not. The company maintains a constant 50 percent dividend payout ratio. As with
every other firm in its industry, next year's sales are projected to increase by exactly 30
percent.
$ 3,700
5,800
$ 9,500
Current
liabilities
Long-term debt
Equity
Total
$ 960
3,580
4,960
$ 9,500
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