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I keep getting the wrong answer as I calculate this, can you help me figure it out? The 2017 financial statements for Grovv'th Industries are
I keep getting the wrong answer as I calculate this, can you help me figure it out?
The 2017 financial statements for Grovv'th Industries are presented below. INCOME STATEMENT, Zelj 280,oe 198,oe BALANCE SHEETS YEAR-END, 2017 188,ee 220,ee 270,ee 27,eee Sales Cos ts EBIT Interest expense Taxable income Taxes (at 35%) Net income Divi dends Addition to retained earnings Assets Current assets Cash Accounts receivable Inventories Total current assets Net plant and equipment Total assets 90 , eee 18, eee 72, eee 25,20e 46, 8ee $ 23,40e 23,40e 4,ee 9, eee 37 , eee 50, eee Liabilities Current liabilities Accounts payable Total current liabilities Long-term debt Stockholders' equity Common stock plus additional paid-in capital Retained earnings Total liabilities and stockholders ' equity 11, eee 11, eee 15, eee 64, eee Sales and costs are projected to grow at 40% a year for at least the next 4 years. Both current assets and accounts payable are projected to rise in proportion to sales. The firm is currently operating at 70% capacity, so it plans to increase fixed assets in proportion to sales. Interest expense will equal 10% of long-term debt outstanding at the stan of the yean The firm will maintain a dividend payout ratio of 0.50 What is the required external financing over the next year? (Enter excess cash as a negative number with a minus sign.) External financing :
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