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The most recent financial statements for Assouad, Incorporated, are shown here: Income Statement Balance Sheet Sales $ 3,500 Current assets $ 4,500 Current liabilities $

The most recent financial statements for Assouad, Incorporated, are shown here:

Income Statement Balance Sheet
Sales $ 3,500 Current assets $ 4,500 Current liabilities $ 950
Costs

2,600

Fixed assets 5,600 Long-term debt 3,600
Taxable income $ 900 Equity 5,550
Taxes (23%) 207 Total

$ 10,100

Total

$ 10,100

Net income

$ 693

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 year's sales are projected to increase by exactly 25 percent.

What is the external financing needed?

Multiple Choice

  • $2,005.25

  • $1,767.75

  • $900.00

  • $1,717.75

  • $1,817.75

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