3. The following balance sheet and income statement should be used. This company is currently operating at 82% of capacity. The profit margin and the dividend payout ratio are constant. Net working capital and fixed assets vary directly with sales. Sales are projected to increase by 20 percent. What is the external financing need? A. -$736 Full copacity sol takes Net income B. -$487 C. $1,144 Utilization 46680 D. $5,708 E. $6,768 full Sales - 38900 Ratio $38,900 x 1.2 = 46680 31,400 * 1.9 2009 Income Statement Net Sales Less: Cost of Goods Sold Less: Depreciation Earnings Before Interest and Taxes Less: Interest Paid Taxable Income Less: Taxes Net Income Dividends Additions to retained earnings 2,600 4,900 1,800 $3,100 1,150 $1,950 $390 ( $1,560 +1.2 new Ad Cash Accounts rec Inventory Total Net fixed assets Total assets $8,1201_> *1.2 21,200 7,500X ) 2009 Balance Sheet $3,160 4 Accounts Payable 4,160 Long-term debt 6,480* Common stock *1-2 $13,800 Retained earnings * +-29,400 few $43,200 Total liabilities & equity 6,380 6380 $43,200 4. Sam's Specialty Store has sales of $200,000, net income of $18,500, total assets of $300,000, and total equity of $250,000. The firm paid $7.400 in dividends and maintains a constant dividend payout ratio. Currently, they are operating at full capacity. All costs and assets vary directly with sales. The firm does not want to obtain any additional external equity. At the sustainable rate of growth, how much new total debt must the firm acquire? come 185000 0 14 A. $0 B. $1,407 C. $2,333 D. $5,983 E. $6,112 ROE Met income bobal equity 250000 18500 290,000