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Here are the abbreviated financial statements for Planner's Peanuts: INCOME STATEMENT, 2015 Sales $ 11,000 Cost 8,700 Net income $ 2,300 BALANCE SHEET, YEAR-END 2014
Here are the abbreviated financial statements for Planner's Peanuts: |
INCOME STATEMENT, 2015 | |||
Sales | $ | 11,000 | |
Cost | 8,700 | ||
Net income | $ | 2,300 | |
BALANCE SHEET, YEAR-END | |||||||||||||||||||
2014 | 2015 | 2014 | 2015 | ||||||||||||||||
Assets | $ | 10,500 | $ | 11,000 | Debt | $ | 853 | $ | 1,000 | ||||||||||
Equity | 9,647 | 10,000 | |||||||||||||||||
Total | $ | 10,500 | $ | 11,000 | Total | $ | 10,500 | $ | 11,000 | ||||||||||
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 25%, 30%, and 35%. (Do not round intermediate calculations. Round your answers to 2 decimal places.) |
External Financing Need | |
25% | $ |
30% | $ |
35% | $ |
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