The most recent financial statements for Assouad, Inc., are shown here: Income Statement Sales $4,200 Current...

 

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The most recent financial statements for Assouad, Inc., are shown here: Income Statement Sales $4,200 Current assets $3,800 Costs Taxable income $2,300 Taxes (24%) Net income $1,748 1,900 Fixed assets 552 Total Balance Sheet Current liabilities What is the external financing needed? 5,300 Long-term debt Equity $9,100 Total $900 3,490 4,710 $9,100 Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. The company maintains a constant 40 percent dividend payout ratio. As with every other firm in its industry, next year's sales are projected to increase by exactly 20 percent. The most recent financial statements for Assouad, Inc., are shown here: Income Statement Sales $4,200 Current assets $3,800 Costs Taxable income $2,300 Taxes (24%) Net income $1,748 1,900 Fixed assets 552 Total Balance Sheet Current liabilities What is the external financing needed? 5,300 Long-term debt Equity $9,100 Total $900 3,490 4,710 $9,100 Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. The company maintains a constant 40 percent dividend payout ratio. As with every other firm in its industry, next year's sales are projected to increase by exactly 20 percent.

Answer rating: 100% (QA)

Heres how to calculate the external financing needed for Assouad Inc Step 1 Project next years sales Since next years sales are projected to increase ... View the full answer