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The most recent financial statements for Summer Tyme, Inc., are shown here: Income Statement Sales Costs Balance Sheet $4,100 Current assets $3,900 2,500 Fixed assets 5,500 Current liabilities Long-term debt $930 3,630

The most recent financial statements for Summer Tyme, Inc., are shown here: Income Statement Sales Costs Balance Sheet $4,100 Current assets $3,900 2,500 Fixed assets 5,500 Current liabilities Long-term debt $930 3,630

Essentials Of Investments
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
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The most recent financial statements for Summer Tyme, Inc., are shown here: Income Statement Sales Costs Taxable income Taxes (35%) Net income $4,100 Current assets $3,900 2,500 Fixed assets $1,600 560 Total O $1,040 Multiple Cholce $1,597.5 Balance Sheet $1,830 $1,647.5 5,500 $1,547.5 Current liabilities Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. The company maintains a constant 60 percent dividend payout ratio. As with every other firm in its industry, next year's sales are projected to increase by exactly 25 percent. Long-term Required: What is the external financing needed? (Do not round your intermediate calculations.) debt Equity $9,400 Total $930 3,630 4,840 $9,400
Transcribed Image Text:The most recent financial statements for Summer Tyme, Inc., are shown here: Income Statement Sales Costs Taxable income Taxes (35%) Net income $4,100 Current assets $3,900 2,500 Fixed assets $1,600 560 Total O $1,040 Multiple Cholce $1,597.5 Balance Sheet $1,830 $1,647.5 5,500 $1,547.5 Current liabilities Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. The company maintains a constant 60 percent dividend payout ratio. As with every other firm in its industry, next year's sales are projected to increase by exactly 25 percent. Long-term Required: What is the external financing needed? (Do not round your intermediate calculations.) debt Equity $9,400 Total $930 3,630 4,840 $9,400
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