The most recent financial statements for GPS, Inc., are shown here: Sales Costs Income Statement Taxable...

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The most recent financial statements for GPS, Inc., are shown here: Sales Costs Income Statement Taxable Income Taxes (40%) Net Income $20,000 $13,874 Assets $59,390 ? ? ? Balance Sheet Debt Equity ? $23,498 Assets and costs are proportional to sales. Debt and equity are not. A dividend of $1,733 was paid, and the company wishes to maintain a constant payout ratio. Next year's sales are projected to be $28,517. What is the external financing needed? (Negative amount should be indicated by a minus sign.) The most recent financial statements for GPS, Inc., are shown here: Sales Costs Income Statement Taxable Income Taxes (40%) Net Income $20,000 $13,874 Assets $59,390 ? ? ? Balance Sheet Debt Equity ? $23,498 Assets and costs are proportional to sales. Debt and equity are not. A dividend of $1,733 was paid, and the company wishes to maintain a constant payout ratio. Next year's sales are projected to be $28,517. What is the external financing needed? (Negative amount should be indicated by a minus sign.)

Answer rating: 100% (QA)

Taxable Income 612... View the full answer