The most recent financial statements for Zoso, Inc., are shown here (assuming no income taxes): Income...

 

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The most recent financial statements for Zoso, Inc., are shown here (assuming no income taxes): Income Statement Sales Costs Net income $4,800 Assets 3,440 $1,360 Total Balance Sheet $15,200 Debt Equity $15,200 Total $10,600 4.600 $15,200 Assets and costs are proportional to sales. Debt and equity are not. No dividends are paid. Next year's sales are projected to be $5.959. What is the external financing needed? (Do not round your intermediate calculations.) HINT: Start by calculating the growth in assets. Now we need to figure out how we will pay for the growth. Next subtract off from that needed amount the estimated growth in internal equity (that is, the new retained earnings that current shareholders use to purchase some of those new assets). Whatever amount is left over is what we must raise in new, external financing. That financing may be in the form of new debt (new loans) or new equity (new shares of stock). The most recent financial statements for Zoso, Inc., are shown here (assuming no income taxes): Income Statement Sales Costs Net income $4,800 Assets 3,440 $1,360 Total Balance Sheet $15,200 Debt Equity $15,200 Total $10,600 4.600 $15,200 Assets and costs are proportional to sales. Debt and equity are not. No dividends are paid. Next year's sales are projected to be $5.959. What is the external financing needed? (Do not round your intermediate calculations.) HINT: Start by calculating the growth in assets. Now we need to figure out how we will pay for the growth. Next subtract off from that needed amount the estimated growth in internal equity (that is, the new retained earnings that current shareholders use to purchase some of those new assets). Whatever amount is left over is what we must raise in new, external financing. That financing may be in the form of new debt (new loans) or new equity (new shares of stock).

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To calculate the external financing needed well follow the steps provided in the hint Step 1 Calcula... View the full answer