The most recent financial statements for Kitsilano Inc. are shown here: Statement of Comprehensive Income $ 5,788 4,200 $ 1,500 510 Sales Costs Taxable income Taxes (34%) Net income $ 990 Current assets Fixed assets Total Statement of Financial Position $ 3,900 Current liabilities. 8,100 Long-term debt Equity Total $12,000 $ 2,200 3,750 6,050 $12,000 Assets, costs, and current llabilities are proportional to sales. Long-term debt and equity are not. Kitsilano maintains a constant 40% dividend payout ratio. Like every other firm In Its Industry, next year's sales are projected to Increase by exactly 15%. What is the external financing needed? (Negative amount should be Indicated by a minus sign. Do not round Intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.) External financing needed $
The most recent financial statements for Kitsilano Inc. are shown here: Statement of Comprehensive Income $ 5,788 4,200 $ 1,500 510 Sales Costs Taxable income Taxes (34%) Net income $ 990 Current assets Fixed assets Total Statement of Financial Position $ 3,900 Current liabilities. 8,100 Long-term debt Equity Total $12,000 $ 2,200 3,750 6,050 $12,000 Assets, costs, and current llabilities are proportional to sales. Long-term debt and equity are not. Kitsilano maintains a constant 40% dividend payout ratio. Like every other firm In Its Industry, next year's sales are projected to Increase by exactly 15%. What is the external financing needed? (Negative amount should be Indicated by a minus sign. Do not round Intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.) 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 Kitsilano Inc. are shown here:
Statement of Comprehensive Income
Costs
Taxable income
Taxes (34%)
Net income
$
Current assets
Fixed assets
Total
Statement of Financial Position
$ 3,900
8,100
$12,000
Current liabilities
Long-term debt
Equity
Total
$ 2,200
3,750
6,850
$12,000
Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. Kitsilano maintains a constant 40%
dividend payout ratio. Like every other firm In Its Industry, next year's sales are projected to increase by exactly 15%.
What is the external financing needed? (Negative amount should be Indicated by a minus sign. Do not round Intermediate
calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.)
External financing needed
$
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