The most recent financial statements for Assouad, Incorporated, are shown here: Income Statement Sales $ 9,900 Costs 7,000 Taxable income $2,900 Taxes (24%) 696 Net income $ 2,204 External financing needed Balance Sheet Current assets $4,500 Fixed assets 9,600 Total $ 14,100 Current liabilities Long-term debt Equity Total $ 2,850 4,400 6,850 $ 14,100 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 16 percent. What is the external financing needed? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

The most recent financial statements for Assouad, Incorporated, are shown here: Income Statement Sales $ 9,900 Costs 7,000 Taxable income $2,900 Taxes (24%) 696 Net income $ 2,204 External financing needed Balance Sheet Current assets $4,500 Fixed assets 9,600 Total $ 14,100 Current liabilities Long-term debt Equity Total $ 2,850 4,400 6,850 $ 14,100 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 16 percent. What is the external financing needed? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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