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The 2017 financial statements for Growth Industries are presented below INCOME STATEMENT, 217 380, eaa 240 , eaa , eaa 112, eaa 280, eaa
The 2017 financial statements for Growth Industries are presented below INCOME STATEMENT, 217 380, eaa 240 , eaa , eaa 112, eaa 280, eaa 320, eaa 370, eaa 370, eaa Sales Costs EBIT Interest expense Taxable income Taxes (at 35%) Net income Dividends Addition to retained earnings Assets Current assets Cash Accounts receivable Inventories Total current assets Net plant and equipment Total assets 21, 840 SHEET, 28 , eaa 39 , 2aa 72, YEAR-END, 217 Liabilities BALANCE 7 , eaa 12, eaa 31, eaa 50, eaa Current liabilities Accounts payable Total current liabilities Long-term debt Stockholders' equity Common stock plus additional paid-in capital Retained earnings Total liabilities and stockholders ' equity 14 , eaa 14 , eaa 15, eaa 61, eaa Sales and costs are projected to grow at 20% a year for at least the next 4 years. Both current assets and accounts payable are projected to rise in proportion to sales. The firm is currently operating at full capacity, so it plans to increase fixed assets in proportion to sales. Interest expense will equal 10% of long-term debt outstanding at the start of the year. The firm will maintain a dividend payout ratio of 030 What is the required external financing over the next year? (Negative amounts should be indicated by e minus sign.) External financing
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