The most recent financial statements for Locke, Inc., are shown here: INCOME STATEMENT BALANCE SHEET Assets...

 

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The most recent financial statements for Locke, Inc., are shown here: INCOME STATEMENT BALANCE SHEET Assets $131,700 Debt $43,500 Sales Costs $62,000 51,400 Equity 88,200 Taxable $ 10,600 Total $131,700 Total $131,700 income Taxes (22%) 2,332 Net income $ 8,268 Assets and costs are proportional to sales; debt and equity are not. A dividend of $3,900 was paid, and the company wishes to maintain a constant payout ratio. Next year's sales are projected to be $71,300. What is the external financing needed? (Do not round intermediate calculations and enter your answer to the nearest whole number, e.g., 32.) External financing needed The most recent financial statements for Locke, Inc., are shown here: INCOME STATEMENT BALANCE SHEET Assets $131,700 Debt $43,500 Sales Costs $62,000 51,400 Equity 88,200 Taxable $ 10,600 Total $131,700 Total $131,700 income Taxes (22%) 2,332 Net income $ 8,268 Assets and costs are proportional to sales; debt and equity are not. A dividend of $3,900 was paid, and the company wishes to maintain a constant payout ratio. Next year's sales are projected to be $71,300. What is the external financing needed? (Do not round intermediate calculations and enter your answer to the nearest whole number, e.g., 32.) External financing needed

Answer rating: 100% (QA)

To calculate the external financing needed we need to determine the increase in assets and the incre... View the full answer