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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 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?

FINANCIAL ACCOUNTING
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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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?
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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