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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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