The most recent financial statements for Cardinal, Inc., are shown here:

Income Statement				Balance Sheet
Sales	$	31,400		Assets	$	74,000		Debt	$	37,400
Costs		18,450						Equity		36,600
Taxable income	$	12,950		Total	$	74,000		Total	$	74,000
Taxes (24%)		3,108
Net income	$	9,842

Assets and costs are proportional to sales. Debt and equity are not. A dividend of $3,800 was paid, and the company wishes to maintain a constant payout ratio. Next year’s sales are projected to be $36,424.

What is the external financing needed?

Answer rating: 100% (QA)

To determine the external financing needed for Cardinal Inc we first need to calculate the projected ... View the full answer