The most recent financial statements for Cardinal, Incorporated, are shown here: Income Statement Balance Sheet Sales $ 22,900 Assets $124,000 Debt $ 29,600 Costs 16,900 Equity 94,400 Taxable income Taxes (24%) Net income $6,000 1,440 $ 4,560 Total $124,000 Total $124,000 Assets and costs are proportional to sales. Debt and equity are not. A dividend of $1,600 was paid, and the company wishes to maintain a constant payout ratio. Next year's sales are projected to be $29,300. What is the external financing needed?
The most recent financial statements for Cardinal, Incorporated, are shown here: Income Statement Balance Sheet Sales $ 22,900 Assets $124,000 Debt $ 29,600 Costs 16,900 Equity 94,400 Taxable income Taxes (24%) Net income $6,000 1,440 $ 4,560 Total $124,000 Total $124,000 Assets and costs are proportional to sales. Debt and equity are not. A dividend of $1,600 was paid, and the company wishes to maintain a constant payout ratio. Next year's sales are projected to be $29,300. What is the external financing needed?
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 51E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...
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![The most recent financial statements for Cardinal, Incorporated, are shown here:
Income Statement
Balance Sheet
Sales
$ 22,900 Assets $124,000
Costs
16,900
Debt
Equity
$ 29,600
94,400
Taxable
$6,000
.
Total $124,000
Total $124,000
income
Taxes (24%)
Net income
1,440
$4,560
Assets and costs are proportional to sales. Debt and equity are not. A dividend of $1,600
was paid, and the company wishes to maintain a constant payout ratio. Next year's sales
are projected to be $29,300.
What is the external financing needed?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff09e7dbe-51ed-4aff-a7d7-52c11a24a3a6%2Fdfa1066b-8262-40a9-bb35-299dde990910%2F29wfodc_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The most recent financial statements for Cardinal, Incorporated, are shown here:
Income Statement
Balance Sheet
Sales
$ 22,900 Assets $124,000
Costs
16,900
Debt
Equity
$ 29,600
94,400
Taxable
$6,000
.
Total $124,000
Total $124,000
income
Taxes (24%)
Net income
1,440
$4,560
Assets and costs are proportional to sales. Debt and equity are not. A dividend of $1,600
was paid, and the company wishes to maintain a constant payout ratio. Next year's sales
are projected to be $29,300.
What is the external financing needed?
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