The most recent financial statements for Cardinal, Inc., are shown here: Income Statement Balance Sheet Sales $
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Question:
The most recent financial statements for Cardinal, Inc., are shown here: |
Income Statement | Balance Sheet | ||||||||||
Sales | $ | 33,000 | Assets | $ | 77,200 | Debt | $ | 40,200 | |||
Costs | 18,650 | Equity | 37,000 | ||||||||
Taxable income | $ | 14,350 | Total | $ | 77,200 | Total | $ | 77,200 | |||
Taxes (24%) | 3,444 | ||||||||||
Net income | $ | 10,906 | |||||||||
Assets and costs are proportional to sales. Debt and equity are not. A dividend of $4,200 was paid, and the company wishes to maintain a constant payout ratio. Next year’s sales are projected to be $37,950. |
What is the external financing needed? (Do not round intermediate calculations.) |
Related Book For
Corporate Finance Core Principles and Applications
ISBN: 978-0077905200
3rd edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford
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