The most recent financial statements for Hornick, Inc., are shown below (assuming no incometaxes). Assets and costs are proportional to sales. Debt and equity are not. No dividends are paid.Next year's sales are projected to be $8,968. What is the external financing needed?Income statement$$Next year's sales $SalesCostsNet income7,6005,1802,420SalesCostsNet income8,968Pro forma income statementExternal financingAssets $Total $Complete the following analysis. Do not hard code values in your calculations.Percent increase in salesAssetsBalance sheet21,700 DebtEquity21,700 Total $Total$Pro forma balance sheetDebtEquityTotal9,10012,60021,700▬▬▬▬

As per Question, next year’s sales are projected to be $8968 and debt and equity aren’t propotional…

The most recent financial statements for Hornick, Inc., are shown below (assuming no income axes). Assets and costs are proportional to sales. Debt and equity are not. No dividends are paid. Next year's sales are projected to be $8,968. What is the external financing needed? Income statement Sales Costs Net income $ Next year's sales $ 7,600 5,180 2,420 8,968 Assets $ Total $ Balance sheet 21,700 Debt Equity 21,700 Total $ 9,100 12,600 21,700

The most recent financial statements for Hornick, Inc., are shown below (assuming no income axes). Assets and costs are proportional to sales. Debt and equity are not. No dividends are paid. Next year's sales are projected to be $8,968. What is the external financing needed? Income statement Sales Costs Net income $ Next year's sales $ 7,600 5,180 2,420 8,968 Assets $ Total $ Balance sheet 21,700 Debt Equity 21,700 Total $ 9,100 12,600 21,700

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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