Using the following financial statements for 2022, calculate the external financing needs for this firm using the following assumptions for 2023:  sales will grow at a rate of 12%, tax rate is 34%, and the firm will distribute 40% of net income as dividends.

 

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Growth rate Tax rate Plowback ratio Payout ratio ASSETS Cash Receivables Inventory Fixed Assets Total Assets LIABILITIES Accounts Payable Long Term Debt Common Stock Retained Earnings Total Liab & Equity 405 1,774 150 4,262 6,591 1,897 3,520 992 182 6,591 EFN Dividends Retained Earnings IGR INCOME STATEMENT Revenue Cost of goods sold Gross profit Selling expenses Depreciation EBIT Interest EBT Taxes Net income 9,063 4,235 4,828 3,921 162 745 98 647 220 427 Growth rate Tax rate Plowback ratio Payout ratio ASSETS Cash Receivables Inventory Fixed Assets Total Assets LIABILITIES Accounts Payable Long Term Debt Common Stock Retained Earnings Total Liab & Equity 405 1,774 150 4,262 6,591 1,897 3,520 992 182 6,591 EFN Dividends Retained Earnings IGR INCOME STATEMENT Revenue Cost of goods sold Gross profit Selling expenses Depreciation EBIT Interest EBT Taxes Net income 9,063 4,235 4,828 3,921 162 745 98 647 220 427

Answer rating: 100% (QA)

Calculation of External Financing Needed EFN using the information provided in the image Assumptions Sales will grow at a rate of 12 in 2023 Tax rate ... View the full answer