What is the plug variable?

Chapter #02 1. What is the amount of external financing needed, assuming the company is operating at full capacity? Assume Sales grow at 12% and Dividend Payout Rate = 60%. Tasha's Toy Emporium Income Statement, 2020 Pro Forma Current 5,000 -3,000 2.000 Sales Less: costs EBT Less: taxes |(40% of EBT) Net Income Dividends Add. To RE -800 1,200 600 600 ASSETS Current Assets Cash A/R Inventory Total Fixed Assets Net PP&E Total Assets Tasha's Toy Emporium - Balance Sheet Current Pro Forma Current Pro Forma Liabilities & Owners' Equity Current Liabilities $500 AP $900 2.000 N/P 2.500 3,000 Total 3,400 5,500 LT Debt 2.000 Owners' Equity 4.000 CS & APIC 2.000 9,500 RE 2.100 Total 4,100 Total L & OE 9,500 A/S (5000/5500)=90.91% LIS (900/5500) = 16.36% change in sales = 5000-5750 = 750 profit margin = 1200/5000=24% dividend payout= 50% EFN=(-9091-750) - (0.1636*750) - (0.24-5750)*(1-0.50) = -131.7 Excess Cash= 131.7 EFN Plug Variable