Based on Jim's expectation of

10.1%

sales growth and payout ratio of

87.94%

of net income next year, Jim developed the pro forma financial statements given below. What is the amount of net new financing needed for Jim's Espresso?Click on the follwoing icon

in

order to copy its contents into a spreadsheet.

Pro Forma Financial Statements

Income Statement			Balance Sheet
Sales	$214,926		Assets
Costs Except Depreciation	(109,538)		Cash and Equivalents	$16,614
EBITDA	$105,388		Accounts Receivable	2,147
Depreciation	(6,705)		Inventories	4,316
EBIT	$98,683		Total Current Assets	$23,077
Interest Expense (net)	(462)		Property, Plant, and Equipment	11,010
Pre-tax Income	$98,221		Total Assets	$34,087
Income Tax	(24,555)
Net Income	$73,666		Liabilities and Equity
			Accounts Payable	$1,674
			Debt	4,100
			Total Liabilities	$5,774
			Stockholders' Equity	$34,224
			Total Liabilities and Equity	$39,998

The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career.

Question content area bottom

Part 1

(Select from the drop-down menu.)

The total new

required

excess

financing will be

$enter your response here.

(Round to the nearest dollar.)