The most recent financial statements for Cardinal, Inc., are shown here: Income Statement Balance Sheet Sales $ 33,000 Assets $ 77,200 Debt $ 40,200 Costs 18,650 Equity 37,000 Taxable income $ 14,350 Total $ 77,200 Total $ 77,200 Taxes (24%) 3,444 Net income $ 10,906 Assets and costs are proportional to sales. Debt and equity are not. A dividend of $4,200 was paid, and the company wishes to maintain a constant payout ratio. Next year’s sales are projected to be $37,950. What is the external financing needed? (Do not round intermediate calculations.)
The most recent financial statements for Cardinal, Inc., are shown here: Income Statement Balance Sheet Sales $ 33,000 Assets $ 77,200 Debt $ 40,200 Costs 18,650 Equity 37,000 Taxable income $ 14,350 Total $ 77,200 Total $ 77,200 Taxes (24%) 3,444 Net income $ 10,906 Assets and costs are proportional to sales. Debt and equity are not. A dividend of $4,200 was paid, and the company wishes to maintain a constant payout ratio. Next year’s sales are projected to be $37,950. What is the external financing needed? (Do not round intermediate calculations.)
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
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The most recent financial statements for Cardinal, Inc., are shown here: |
| Income Statement | |||||||||||
| Sales | $ | 33,000 | Assets | $ | 77,200 | Debt | $ | 40,200 | |||
| Costs | 18,650 | Equity | 37,000 | ||||||||
| Taxable income | $ | 14,350 | Total | $ | 77,200 | Total | $ | 77,200 | |||
| Taxes (24%) | 3,444 | ||||||||||
| Net income | $ | 10,906 | |||||||||
|
Assets and costs are proportional to sales. Debt and equity are not. A dividend of $4,200 was paid, and the company wishes to maintain a constant payout ratio. Next year’s sales are projected to be $37,950. |
|
What is the external financing needed? (Do not round intermediate calculations.) |
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