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The most recent financial statements for Monochrome, Incorporated, are shown here: Income Statement Sales Costs $ 18,300 Assets 15,400 Taxable income Taxes (21%) $ 2,900 609 Total $ 42,300 Balance Sheet $ 42,300 Debt Equity Total $ 28,900 13,400 $ 42,300 Net income $ 2,291 Assets and costs are proportional to sales. Debt and equity are not. A dividend of $1,400 was paid, and the company wishes to maintain a constant payout ratio. Next year's sales are projected to be $21,960. What is the external financing needed? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. External financing needed

The most recent financial statements for Monochrome, Incorporated, are shown here: Income Statement Sales Costs $ 18,300 Assets 15,400 Taxable income Taxes (21%) $ 2,900 609 Total $ 42,300 Balance Sheet $ 42,300 Debt Equity Total $ 28,900 13,400 $ 42,300 Net income $ 2,291 Assets and costs are proportional to sales. Debt and equity are not. A dividend of $1,400 was paid, and the company wishes to maintain a constant payout ratio. Next year's sales are projected to be $21,960. What is the external financing needed? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. External financing needed

Corporate Fin Focused Approach
Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter3: Analysis Of Financial Statements
Section: Chapter Questions
Problem 8P
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The most recent financial statements for Monochrome, Incorporated, are shown here: Income Statement Sales Costs $ 18,300 Assets 15,400 Taxable income Taxes (21%) $ 2,900 609 Total $ 42,300 Balance Sheet $ 42,300 Debt Equity Total $ 28,900 13,400 $ 42,300 Net income $ 2,291 Assets and costs are proportional to sales. Debt and equity are not. A dividend of $1,400 was paid, and the company wishes to maintain a constant payout ratio. Next year's sales are projected to be $21,960. What is the external financing needed? Note: 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 Monochrome, Incorporated, are shown here: Income Statement Sales Costs $ 18,300 Assets 15,400 Taxable income Taxes (21%) $ 2,900 609 Total $ 42,300 Balance Sheet $ 42,300 Debt Equity Total $ 28,900 13,400 $ 42,300 Net income $ 2,291 Assets and costs are proportional to sales. Debt and equity are not. A dividend of $1,400 was paid, and the company wishes to maintain a constant payout ratio. Next year's sales are projected to be $21,960. What is the external financing needed? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. External financing needed
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