The most recent financial statements for Mixton, Incorporated, are shown here: Income Statement Balance Sheet Sales $ 26,200 Assets $ 63,600 Debt $ 28,300 Costs 17,800 Equity 35,300 Taxable income $ 8,400 Total $ 63,600 Total $ 63,600 Taxes (22%) 1,848 Net income $ 6,552 Assets and costs are proportional to sales. Debt and equity are not. A dividend of $2,500 was paid, and the company wishes to maintain a constant payout ratio. Next year’s sales are projected to be $29,344. What is the external financing needed?
The most recent financial statements for Mixton, Incorporated, are shown here: Income Statement Balance Sheet Sales $ 26,200 Assets $ 63,600 Debt $ 28,300 Costs 17,800 Equity 35,300 Taxable income $ 8,400 Total $ 63,600 Total $ 63,600 Taxes (22%) 1,848 Net income $ 6,552 Assets and costs are proportional to sales. Debt and equity are not. A dividend of $2,500 was paid, and the company wishes to maintain a constant payout ratio. Next year’s sales are projected to be $29,344. What is the external financing needed?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
|
The most recent financial statements for Mixton, Incorporated, are shown here: |
| Income Statement | |||||
|---|---|---|---|---|---|
| Sales | $ 26,200 | Assets | $ 63,600 | Debt | $ 28,300 |
| Costs | 17,800 | Equity | 35,300 | ||
| Taxable income | $ 8,400 | Total | $ 63,600 | Total | $ 63,600 |
| Taxes (22%) | 1,848 | ||||
| Net income | $ 6,552 | ||||
|
Assets and costs are proportional to sales. Debt and equity are not. A dividend of $2,500 was paid, and the company wishes to maintain a constant payout ratio. Next year’s sales are projected to be $29,344. What is the external financing needed? |
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