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The most recent financial statements for Cardinal, Inc., are shown here: Income Statement Balance Sheet Sales $ 28,200 Assets $ 67,600 Debt $ 31,800 Costs
The most recent financial statements for Cardinal, Inc., are shown here: |
Income Statement | Balance Sheet | ||||||||||
Sales | $ | 28,200 | Assets | $ | 67,600 | Debt | $ | 31,800 | |||
Costs | 18,050 | Equity | 35,800 | ||||||||
Taxable income | $ | 10,150 | Total | $ | 67,600 | Total | $ | 67,600 | |||
Taxes (24%) | 2,436 | ||||||||||
Net income | $ | 7,714 | |||||||||
Assets and costs are proportional to sales. Debt and equity are not. A dividend of $3,000 was paid, and the company wishes to maintain a constant payout ratio. Next years sales are projected to be $33,276. What is the external financing needed? |
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