The most recent financial statements for Mixton, Incorporated, are shown here: Income Statement Balance Sheet $ 67,600 Debt Equity Sales Costs Taxable income Taxes (24%) Net income $28,200 Assets 18,050 $ 10,150 2,436 $7,714 Total External financing needed $ 67,600 Total $ 31,800 35,800 $ 67,600 Assets and costs are proportional to sales. Debt and equity are not. A dividend of $3,000 was paid, and the company wishes to maintain a constant payout ratio. Next year's sales are projected to be $33,276. What is the external financing needed? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
The most recent financial statements for Mixton, Incorporated, are shown here: Income Statement Balance Sheet $ 67,600 Debt Equity Sales Costs Taxable income Taxes (24%) Net income $28,200 Assets 18,050 $ 10,150 2,436 $7,714 Total External financing needed $ 67,600 Total $ 31,800 35,800 $ 67,600 Assets and costs are proportional to sales. Debt and equity are not. A dividend of $3,000 was paid, and the company wishes to maintain a constant payout ratio. Next year's sales are projected to be $33,276. What is the external financing needed? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The most recent financial statements for Mixton, Incorporated, are shown here:
Income Statement
Sales
Costs
Taxable
income
Taxes (24%)
Net income
$ 28,200 Assets
18,050
$ 10,150
2,436
$7,714
Balance Sheet
$ 67,600 Debt
Equity
External financing needed
Total $ 67,600
Total
$ 31,800
35,800
$ 67,600
Assets and costs are proportional to sales. Debt and equity are not. A dividend of
$3,000 was paid, and the company wishes to maintain a constant payout ratio. Next
year's sales are projected to be $33,276. What is the external financing needed? (Do not
round intermediate calculations and round your answer to the nearest whole number,
e.g., 32.)
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