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The most recent financial statements for Assouad, Inc., are shown here: Income Statement Balance Sheet Sales $ 8,500 Current assets $ 3,450 Current liabilities $
The most recent financial statements for Assouad, Inc., are shown here: |
Income Statement | Balance Sheet | ||||||||||
Sales | $ | 8,500 | Current assets | $ | 3,450 | Current liabilities | $ | 2,325 | |||
Costs | 5,950 | Fixed assets | 8,900 | Long-term debt | 3,910 | ||||||
Taxable income | $ | 2,550 | Equity | 6,115 | |||||||
Taxes (22%) | 561 | Total | $ | 12,350 | Total | $ | 12,350 | ||||
Net income | $ | 1,989 | |||||||||
Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. The company maintains a constant 45 percent dividend payout ratio. As with every other firm in its industry, next years sales are projected to increase by exactly 16 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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