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please help urgently Income Statement 2017 Sales $800,000 Costs 650,000 Other expenses 19,000 Ebit 131,000 Interest paid 15,000 Taxable income 116,000 Taxes (35%) 40.600 75.400
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Income Statement 2017 Sales $800,000 Costs 650,000 Other expenses 19,000 Ebit 131,000 Interest paid 15,000 Taxable income 116,000 Taxes (35%) 40.600 75.400 Net Income 33,000 Dividend Add to RE 42,400 Balance Sheet 2017 Assets Liabilities and Equity Current assets Current liabilities Cash 25,300 Acc payable 68,000 Acc. Receivables 50,000 Notes payable 17,000 Inventory 86,900 Total 85,000 Total 162,200 Long term debt 158,000 Fixed assets Owners' Equity Net plant & equip. 413,000 Comm. Stock 140,000 RE 192,200 Total 332,200 Total assets 575 200 Total liability and equity 575 200 The most recent financial statements for your company are as follows. Sales for 2018 are projected to grow by 20%. Interest expense will remain constant; the Tax rate and the dividend payout rate will also remain constant. Costs, other expenses, current assets, and accounts payable increase spontaneously with sales. If the firm is operating at only 80% capacity, and no new debt or equity is issued, what is the external financing needed to support the growth rate in salesStep by Step Solution
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