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Problem 18-18 Required External Financing (LO3) Here are the abbreviated financial statements for Planner's Peanuts: INCOME STATEMENT, 2019 Sales $8 , 000 Cost 6, 300
Problem 18-18 Required External Financing (LO3) Here are the abbreviated financial statements for Planner's Peanuts: INCOME STATEMENT, 2019 Sales $8 , 000 Cost 6, 300 Net income $ 1 , 700 BALANCE SHEET, YEAR-END 2018 2019 2018 2019 Assets $ 4, 500 $5 , 000 Debt $ 853 $1 , 000 Equity 3, 647 4, 000 Total $4, 500 $5 , 000 Total $4 , 500 $5 , 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 2020 of (a) 25%, (b) 30%, and (c) 35%. (Do not round intermediate calculations. Round your answers to 2 decimal places.) External Financing Need (a 25% (b) 30% (c) 35%
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