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The Dalmation Corporation expects the following summarized financial results this year ($000). INCOME STATEMENT BALANCE SHEET Revenue $10,500 Assets Cost/expenses 9,100 Current assets $5,500 Tax
The Dalmation Corporation expects the following summarized financial results this year ($000).
INCOME STATEMENT | BALANCE SHEET | |||||
Revenue | $10,500 | Assets | ||||
Cost/expenses | 9,100 | Current assets | $5,500 | |||
Tax | 560 | Net fixed assets | 6,900 | |||
Net Income | 840 | Total assets | $12,400 | |||
Dividends | 420 | Liabilities & equity | ||||
Current | $320 | |||||
Debt | 5,080 | |||||
Equity | 7,000 | |||||
Total L&E | $12,400 |
Use the EFR relation to estimate Dalmation's external funding requirements under the following conditions. Enter your answers in thousands. For example, an answer of $200 thousands should be entered as 200, not 200,000.
- Sales growth of 15%. $
- Sales growth of 18% and a reduction in the payout ratio to 25%. $
- Sales growth of 25%, elimination of dividends, and a 4% improvement in ROS. $
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