The most recent financial statements for Kerch, Inc., are shown here (assuming no income taxes): Income Statement Balance Sheet Sales Costs $9,300 7,330 Assets $20,000 Debt Equity $ 8,000 12,000 Net income $ 1,970 Total $20,000 Total $20,000 Assets and costs are proportional to sales. Debt and equity are not. No dividends are paid. Next year's sales are projected to be $10,788. What is the external financing needed? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) External financing needed

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
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The most recent financial statements for Kerch, Inc., are shown here (assuming no income
taxes):
Income Statement
Balance Sheet
Sales
Costs
$9,300
7,330
Assets
$20,000
Debt
Equity
$ 8,000
12,000
Net income $ 1,970
Total $20,000
Total
$20,000
Assets and costs are proportional to sales. Debt and equity are not. No dividends are paid.
Next year's sales are projected to be $10,788.
What is the external financing needed? (Do not round intermediate calculations and round
your answer to 2 decimal places, e.g., 32.16.)
External financing needed
Transcribed Image Text:The most recent financial statements for Kerch, Inc., are shown here (assuming no income taxes): Income Statement Balance Sheet Sales Costs $9,300 7,330 Assets $20,000 Debt Equity $ 8,000 12,000 Net income $ 1,970 Total $20,000 Total $20,000 Assets and costs are proportional to sales. Debt and equity are not. No dividends are paid. Next year's sales are projected to be $10,788. What is the external financing needed? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) External financing needed
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