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Current Assets Net Fixed A $100 Accts. Pay $200 Long term debt Equity $300 Total L&E Net Income $50Sales $100 Costs $150 Taxable income $300

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Current Assets Net Fixed A $100 Accts. Pay $200 Long term debt Equity $300 Total L&E Net Income $50Sales $100 Costs $150 Taxable income $300 Taxes $132 $1,000 $800 $200 $68 Total Assets Assume costs, accounts payable, and current assets all increase at the same rate as sales. Also assume 80% of net income is paid out in dividends and that the firm is currently operating at 90% of capacity. If sales grow at 25%, compute external financing needed. Multiple Choice $0.00 $4.50 $22.50 O $29.50

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