8. Sales and Growth (LO2) The most recent financial statements for Cariboo Co. are shown here:...

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8. Sales and Growth (LO2) The most recent financial statements for Cariboo Co. are shown here: Statement of Comprehensive Income Statement of Financial Position Sales $49,000 Current Assets $ 21,000 Long-term Debt $ 51,000 Costs 37,500 Fixed Assets Taxable income $11,500 Total 86,000 Equity $107,000 56,000 Total $107,000 Taxes (34%) 3,910 Net income $ 7,590 Assets and costs are proportional to sales. The company maintains a constant 30% dividend payout ratio and a constant debt-equity ratio. What is the maximum increase in sales that can be sustained, assuming no new equity is issued? 3. Calculating EFN (LO2) The most recent financial statements for Marpole Inc. are shown here (assuming no income taxes): Statement of Comprehensive Income Statement of Financial Position Sales $6,300 Assets $18,300 Debt $12,400 Costs 3,890 Equity 5,900 Net income $2,410 Total $18,300 Total $18,300 Assets and costs are proportional to sales. Debt and equity are not. No dividends are paid. Next year's sales are projected to be $7,434. What is the external financing needed? 8. Sales and Growth (LO2) The most recent financial statements for Cariboo Co. are shown here: Statement of Comprehensive Income Statement of Financial Position Sales $49,000 Current Assets $ 21,000 Long-term Debt $ 51,000 Costs 37,500 Fixed Assets Taxable income $11,500 Total 86,000 Equity $107,000 56,000 Total $107,000 Taxes (34%) 3,910 Net income $ 7,590 Assets and costs are proportional to sales. The company maintains a constant 30% dividend payout ratio and a constant debt-equity ratio. What is the maximum increase in sales that can be sustained, assuming no new equity is issued? 3. Calculating EFN (LO2) The most recent financial statements for Marpole Inc. are shown here (assuming no income taxes): Statement of Comprehensive Income Statement of Financial Position Sales $6,300 Assets $18,300 Debt $12,400 Costs 3,890 Equity 5,900 Net income $2,410 Total $18,300 Total $18,300 Assets and costs are proportional to sales. Debt and equity are not. No dividends are paid. Next year's sales are projected to be $7,434. What is the external financing needed?

Answer rating: 100% (QA)

Retention Ratio can be computed as 1 payout 1 30 70 Return on Equity can be computed as Net Income E... View the full answer