Question
Find below the Companys financial statements for year 2525. Balance Sheet, 12/31/2525 Income, 1/1 12/31/2525 $390 Cash & securities $1,190 Current liabilities Sales $20,000 $900
Find below the Companys financial statements for year 2525.
Balance Sheet, 12/31/2525 Income, 1/1 12/31/2525
$390 Cash & securities $1,190 Current liabilities Sales $20,000
$900 Inventory $1,200 Debt total costs $19,500
$3,700 PP&E $2,600 Stockholders equity net income $500
$4,990 Total assets $4,990 dividends $190
new retained earnings $310
For 2526 the company plans 17.30% sales growth. They plan to hold constant the asset turnover (salestotal assets) and payout ratio (=dividendsnet income). They plan to increase Current Liabilities spontaneously with sales, while holding Debt constant. Suppose the company decides to hold constant their net profit margin (=net income sales). Given the above plan, how much external financing is needed for year 2526?
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