27. Calculating EFN (LO2) The most recent financial statements for Hopington Tours Inc. follow. Sales for...

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27. Calculating EFN (LO2) The most recent financial statements for Hopington Tours Inc. follow. Sales for 2020 are projected to grow by 20%. Interest expense will remain constant; the tax rate and the dividend payout rate will also remain constant. Costs, other expenses, current assets, and accounts payable increase spontaneously with sales. If the firm is operating at full capacity and no new debt or equity is issued, what is the external financing needed to support the 20% growth rate in sales? Sales Costs Other expenses Earnings before interest and taxes Interest paid Taxable income Taxes (35%) Net income HOPINGTON TOURS INC. 2019 Statement of Comprehensive Income $929,000 723,000 19,000 $187,000 14,000 $173,000 60,550 $112,450 27. Calculating EFN (LO2) The most recent financial statements for Hopington Tours Inc. follow. Sales for 2020 are projected to grow by 20%. Interest expense will remain constant; the tax rate and the dividend payout rate will also remain constant. Costs, other expenses, current assets, and accounts payable increase spontaneously with sales. If the firm is operating at full capacity and no new debt or equity is issued, what is the external financing needed to support the 20% growth rate in sales? Sales Costs Other expenses Earnings before interest and taxes Interest paid Taxable income Taxes (35%) Net income HOPINGTON TOURS INC. 2019 Statement of Comprehensive Income $929,000 723,000 19,000 $187,000 14,000 $173,000 60,550 $112,450