Question
The most recent financial statements for Assouad, Incorporated, are shown here: Income Statement Balance Sheet Sales $ 8,700 Current assets $ 3,600 Current liabilities $
| The most recent financial statements for Assouad, Incorporated, are shown here: |
| Income Statement | Balance Sheet | ||||
|---|---|---|---|---|---|
| Sales | $ 8,700 | Current assets | $ 3,600 | Current liabilities | $ 2,400 |
| Costs | 6,100 | Fixed assets | 9,000 | Long-term debt | 3,980 |
| Taxable income | $ 2,600 | Equity | 6,220 | ||
| Taxes (24%) | 624 | Total | $ 12,600 | Total | $ 12,600 |
| Net income | $ 1,976 | ||||
| Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. The company maintains a constant 35 percent dividend payout ratio. As with every other firm in its industry, next years sales are projected to increase by exactly 18 percent. What is the external financing needed? |
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