Question
For the year just ended, Shriftman Fabrics reported total sales of $12,000, costs of 8,952, total assets of $27,200, total liabilities of $7,400, and total
For the year just ended, Shriftman Fabrics reported total sales of $12,000, costs of 8,952, total assets of $27,200, total liabilities of $7,400, and total equity of $19,800. The company does not pay dividends. Assume that all costs and assets change spontaneously with sales. The tax rate and dividend payout ratios remain constant. Next years revenue is expected to be $14,820. What will be the amount of external financing needed to support this increase in sales? Assume the firm is currently operating at full capacity.
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$33,592
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$10,028
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$3,344
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$29,828
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$2,628
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