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

Assets and costs are proportional to sales. Debt and equity are not. A dividend of $2,000 was paid, and the company wishes to maintain a constant payout ratio. Next year’s sales are projected to be $32,545.

What is the external financing needed? (Do not round intermediate calculations.)

External financing needed           $

Transcribed Image Text:

INCOME BALANCE SHEET STATEMENT Sales $ 28,300 Assets $ 58,400 Debt $ 25,400 Costs 19,800 Equity 33,000 Taxable 8,500 Total $ 58,400 Total $ 58,400 income Taxes 3,400 (40%) Net 2$ income 5,100 INCOME BALANCE SHEET STATEMENT Sales $ 28,300 Assets $ 58,400 Debt $ 25,400 Costs 19,800 Equity 33,000 Taxable 8,500 Total $ 58,400 Total $ 58,400 income Taxes 3,400 (40%) Net 2$ income 5,100

Answer rating: 100% (QA)

An increase of sales to 32545 is an increase of Sales increase 32545 28300 28... View the full answer