Question
Based on Jim's expectation of 9.9% sales growth and payout ratio of 89.86% of net income next year, Jim developed the pro forma financial statements
Based on Jim's expectation of 9.9% sales growth and payout ratio of 89.86% 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?
Income Statement Balance Sheet Sales $222,405 Assets Costs Except Depreciation (109,120) Cash and Equivalents $16,375 EBITDA $113,285 Accounts Receivable 2,308 Depreciation (6,616) Inventories 4,484 EBIT $106,669 Total Current Assets $23,167 Interest Expense (net) (429) Property, Plant, and Equipment 11,034 Pretax Income $106,240 Total Assets $34,201 Income Tax (37,184) Net Income $69,056 Liabilities and Equity Accounts Payable $1,605 Debt 3,950 Total Liabilities $5,555 Stockholders' Equity $32,712 Total Liabilities and Equity $38,267
Will it be excess or required financing?
How much financing?
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