Question: The most recent financial statements for Reply, Inc., are shown here: Assets and costs are proportional to sales. Debt and equity are not. A dividend

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

Assets and costs are proportional to sales. Debt and equity are not. A dividend of $2,400 was paid, and the company wishes to maintain a constant payout ratio. Next year's sales are projected to be $32,085. What is the external financing needed?

Income Statement Balance Sheet Sales Costs Taxable income Taxes (40%) $27,900 Assets $67,000 Debt $27,400 39,600 $67,000 18,100 9,800 3.920 5,880 Equity $67,000 Total Total Net income

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