Managerial finance busi530

Untitled document - x _ Untitled document - x _ Untitled document - x _ Untitled docu ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Flearn.liberty.edu%252Fwebapps Chapter 18 Homework i Saved The 2019 financial statements for Growth Industries are presented below. 7.33 Sales INCOME STATEMENT, 2019 $ 330, 000 points Costs EBIT 215, 000 Interest expense $ 115, 000 Skipped Taxable income 23, 000 Taxes (at 218 ) $ 92 , 000 Net income 19, 320 $ Dividends 72 , 680 eBook $ 43, 608 Addition to retained earnings $ 29, 072 Print BALANCE SHEET, YEAR-END, 2019 Assets Liabilities Current assets Current liabilities Cash $ . 9,000 Accounts payable $ 16, 000 Accounts receivable 14 , 000 37, 000 Total current liabilities $ 16, 000 Inventories Long-term debt 230,000 Total current assets $ 60,000 Stockholders' equity Net plant and equipment 270, 000 Common stock plus additional paid-in capital 15 , 000 Retained earnings 69,000 Total assets $ 330, 000 Total liabilities plus stockholders' equity $ 330, 000 Sales and costs are projected to grow at 30% 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 75% capacity, so it plans to increase fixed assets in proportion to sales. Interest expense will equal 10% of long-term debt outstanding at the start of the year. The firm will maintain a dividend payout ratio of 0.60. What is the required external financing over the next year? (Enter excess cash as a negative number with a minus sign.) Mc Graw