The most recent financial statements for Reply, Inc., are shown here: Income Statement Balance Sheet Sales Costs Taxable income $28,600 20,600 $8,000 Taxes (40%) 3,200 Net income $ 4,800 Assets $61,100 Total $61,100 Debt $25,700 Equity 35,400 Total $61,100 Assets and costs are proportional to sales. Debt and equity are not. A dividend of $2,100 was paid, and the company wishes to maintain a constant payout ratio. Next year's sales are projected to be $34,320. What is the external financing needed? (Do not round intermediate calculations.) External financing needed
The most recent financial statements for Reply, Inc., are shown here: Income Statement Balance Sheet Sales Costs Taxable income $28,600 20,600 $8,000 Taxes (40%) 3,200 Net income $ 4,800 Assets $61,100 Total $61,100 Debt $25,700 Equity 35,400 Total $61,100 Assets and costs are proportional to sales. Debt and equity are not. A dividend of $2,100 was paid, and the company wishes to maintain a constant payout ratio. Next year's sales are projected to be $34,320. What is the external financing needed? (Do not round intermediate calculations.) 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 Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
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Transcribed Image Text:The most recent financial statements for Reply, Inc., are shown here:
Income Statement
Balance Sheet
Sales
Assets $61,100 Debt $25,700
35,400
Costs
Equity
Taxable
income
$28,600
20,600
$8,000
Taxes (40%) 3,200
Net income $ 4,800
Total $61,100
Total $ 61,100
Assets and costs are proportional to sales. Debt and equity are not. A dividend of $2,100
was paid, and the company wishes to maintain a constant payout ratio. Next year's sales
are projected to be $34,320.
What is the external financing needed? (Do not round intermediate calculations.)
External financing
needed
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