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Here are the abbreviated financial statements for Planners Peanuts: INCOME STATEMENT, 2019 Sales $ 7,500 Cost 5,900 Net income $ 1,600 BALANCE SHEET, YEAR-END 2018
Here are the abbreviated financial statements for Planners Peanuts:
INCOME STATEMENT, 2019 | |||
Sales | $ | 7,500 | |
Cost | 5,900 | ||
Net income | $ | 1,600 | |
BALANCE SHEET, YEAR-END | |||||||||||||||||||
2018 | 2019 | 2018 | 2019 | ||||||||||||||||
Assets | $ | 3,500 | $ | 4,000 | Debt | $ | 853 | $ | 1,000 | ||||||||||
Equity | 2,647 | 3,000 | |||||||||||||||||
Total | $ | 3,500 | $ | 4,000 | Total | $ | 3,500 | $ | 4,000 | ||||||||||
Assets are proportional to sales. If the dividend payout ratio is fixed at 50%, calculate the required total external financing for growth rates in 2020 of (a) 40%, (b) 45%, and (c) 50%. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
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