The most recent financial statements for Bello, Inc., are shown here: Income Statement Balance Sheet Sales $ 37,600 Assets $ 135,000 Debt $ 37,000 Costs 26,100 Equity 98,000 Taxable income $ 11,500 Total $ 135,000 Total $ 135,000 Taxes (21%) 2,415 Net income $ 9,085 Assets and costs are proportional to sales; debt and equity are not. A dividend of $2,700 was paid, and the company wishes to maintain a constant payout ratio. Next year’s sales are projected to be $42,112. What external financing is needed?
The most recent financial statements for Bello, Inc., are shown here: Income Statement Balance Sheet Sales $ 37,600 Assets $ 135,000 Debt $ 37,000 Costs 26,100 Equity 98,000 Taxable income $ 11,500 Total $ 135,000 Total $ 135,000 Taxes (21%) 2,415 Net income $ 9,085 Assets and costs are proportional to sales; debt and equity are not. A dividend of $2,700 was paid, and the company wishes to maintain a constant payout ratio. Next year’s sales are projected to be $42,112. What external financing is needed?
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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Question
|
The most recent financial statements for Bello, Inc., are shown here: |
| Income Statement | Balance Sheet | ||||||||||
| Sales | $ | 37,600 | Assets | $ | 135,000 | Debt | $ | 37,000 | |||
| Costs | 26,100 | Equity | 98,000 | ||||||||
| Taxable income | $ | 11,500 | Total | $ | 135,000 | Total | $ | 135,000 | |||
| Taxes (21%) | 2,415 | ||||||||||
| Net income | $ | 9,085 | |||||||||
|
Assets and costs are proportional to sales; debt and equity are not. A dividend of $2,700 was paid, and the company wishes to maintain a constant payout ratio. Next year’s sales are projected to be $42,112. |
|
What external financing is needed? |
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