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Here are the abbreviated financial statements for Planners Peanuts: INCOME STATEMENT, 2022 Sales $ 9,000 Cost 7,100 Net income $ 1,900 BALANCE SHEET, YEAR-END 2021
Here are the abbreviated financial statements for Planners Peanuts:
| INCOME STATEMENT, 2022 | |
|---|---|
| Sales | $ 9,000 |
| Cost | 7,100 |
| Net income | $ 1,900 |
| BALANCE SHEET, YEAR-END | |||||
|---|---|---|---|---|---|
| 2021 | 2022 | 2021 | 2022 | ||
| Assets | $ 6,500 | $ 7,000 | Debt | $ 853 | $ 1,000 |
| Equity | 5,647 | 6,000 | |||
| Total | $6,500 | $ 7,000 | Total | $ 6,500 | $ 7,000 |
Assets are proportional to sales. If the dividend payout ratio is fixed at 50%, calculate the required total external financing for growth rates in 2023 of (a) 25%, (b) 30%, and (c) 35%.
Note: Do not round intermediate calculations. Round your answers to 2 decimal places.
| External Financing Needed | ||
| (a) | 25% | |
| (b) | 30% | |
| [c] | 35% |
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