Use the below information to answer the following question. Income Statement For the Year Sales $36,200 Cost
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Question:
Use the below information to answer the following question. |
Income Statement | |
For the Year | |
Sales | $36,200 |
Cost of goods sold | 27,900 |
Depreciation | 2,950 |
Earnings before interest and taxes | $ 5,350 |
Interest paid | 1,180 |
Taxable income | $ 4,170 |
Taxes | 1,270 |
Net income | $ 2,900 |
Dividends $870 |
Balance Sheet | |
End-of-Year | |
Cash | $ 350 |
Accounts receivable | 3,150 |
Inventory | 8,300 |
Total current assets | $11,800 |
Net fixed assets | 27,600 |
Total assets | $39,400 |
Accounts payable | $ 3,950 |
Long-term debt | 14,700 |
Common stock ($1 par value) | 12,500 |
Retained earnings | 8,250 |
Total Liab. & Equity | $39,400 |
This firm is currently operating at full capacity. The profit margin and the dividend payout ratio are held constant. Net working capital and fixed assets vary directly with sales. Sales are projected to increase by 11 percent. What is the external financing needed? |
$896 |
$1,649 |
$972 |
–$145 |
–$768 |
Related Book For
Financial management theory and practice
ISBN: 978-0324422696
12th Edition
Authors: Eugene F. Brigham and Michael C. Ehrhardt
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