Question
The financial statement of Ruby & Company is as follows: Income Statement Sales 5,700 Costs 4,200 Taxable Income 1,500 Taxes 34% 510 Net Income 990
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The financial statement of Ruby & Company is as follows:
| Income Statement | |
| Sales | 5,700 |
| Costs | 4,200 |
| Taxable Income | 1,500 |
| Taxes 34% | 510 |
| Net Income | 990 |
| Balance Sheet | |||
| Current Assets | 3,900 | Current Liabilities | 2,200 |
| Fixed Assets | 8,100 | Long Term Debt | 3,750 |
|
|
| Equity | 6,050 |
| Total | 12,000 | Total | 12,000 |
Assets, Costs and current liabilities are proportional to sales. Long term debt and equity are not. The company maintains a constant 40% dividend pay-out ratio. Next years sales are projected to increase by exactly 15%. What is the external financing required?
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Cases In Healthcare Finance
Authors: Louis C. Gapenski
2nd Edition
1567932002, 978-1567932003
