The most financial statements for GPS, Inc., are shown here: Income Statement Balance Sheet Sales $ 34,000
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Question:
The most financial statements for GPS, Inc., are shown here:
Income Statement | Balance Sheet | ||||
Sales | $ 34,000 | Assets | $ 57,700 | Debt | $ 22,500 |
Costs | 24,500 | Equity | 35,200 | ||
Taxable income | $9,500 | Total | $ 57,700 | Total | $ 57,700 |
Taxes (40%) | 3,800 | ||||
Net income | $5,700 |
Assets and costs are proportional to sales. Debt and equity are not. A dividend of $2,000 was paid, and the company wishes to maintain a constant payout ratio. Next year's sales are projected to be $37,400. What is the external financing needed?
Related Book For
Fundamentals of corporate finance
ISBN: 978-0078034633
10th edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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