Question
please help and show each step The most recent financial statements for GPS, Inc., are shown here: Income Statement Balance Sheet Sales $23,900 Assets $124,000
please help and show each step
The most recent financial statements for GPS, Inc., are shown here: Income Statement Balance Sheet Sales $23,900 Assets $124,000 Debt $32,600 Costs 17,200 Equity 91,400 Taxable income $6,700 Total $124,000 Total $124,000 Taxes (35%) 2,345 Net income $4,355
Assets and costs are proportional to sales. Debt and equity are not. A dividend of $1,630 was paid, and the company wishes to maintain a constant payout ratio. Next year's sales are projected to be $29,600.
Required: What is the external financing needed?
Multiple Choice
$26,198
$19,830
$234,171
$22,377
$21,103
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