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The most recent financial statements for Assouad, Inc., are shown here: Income Statement Balance Sheet Sales $ 9,700 Current assets $ 4,350 Current liabilities $
The most recent financial statements for Assouad, Inc., are shown here:
Income Statement | Balance Sheet | ||||||||||
Sales | $ | 9,700 | Current assets | $ | 4,350 | Current liabilities | $ | 2,775 | |||
Costs | 6,850 | Fixed assets | 9,500 | Long-term debt | 4,330 | ||||||
Taxable income | $ | 2,850 | Equity | 6,745 | |||||||
Taxes (22%) | 627 | Total | $ | 13,850 | Total | $ | 13,850 | ||||
Net income | $ | 2,223 | |||||||||
Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. The company maintains a constant 40 percent dividend payout ratio. As with every other firm in its industry, next years sales are projected to increase by exactly 19 percent. |
What is the external financing needed? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
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