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Here are the abbreviated financial statements for Planner's Peanuts: INCOME STATEMENT, 2015 Sales $ 3,500 Cost 2,700 Net income $ 800 BALANCE SHEET, YEAR-END 2014
Here are the abbreviated financial statements for Planner's Peanuts: |
INCOME STATEMENT, 2015 | |||
Sales | $ | 3,500 | |
Cost | 2,700 | ||
Net income | $ | 800 | |
BALANCE SHEET, YEAR-END | |||||||||||||||||||
2014 | 2015 | 2014 | 2015 | ||||||||||||||||
Assets | $ | 4,500 | $ | 5,000 | Debt | $ | 833 | $ | 1,000 | ||||||||||
Equity | 3,667 | 4,000 | |||||||||||||||||
Total | $ | 4,500 | $ | 5,000 | Total | $ | 4,500 | $ | 5,000 | ||||||||||
Assets are proportional to sales. If the dividend payout ratio is fixed at 50%, calculate the required total external financing for growth rates in 2016 of 20%, 25%, and 30%. (Do not round intermediate calculations. Round your answers to 2 decimal places.) |
External Financing Need | |
20% | $ |
25% | $ |
30% | $ |
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