Question
The most recent financial statements for Cardinal, Inc., are shown here: Income Statement Balance Sheet Sales $23,600 Assets $115,000 Debt $46,600 Costs 16,000 Equity 68,400
| The most recent financial statements for Cardinal, Inc., are shown here: |
| Income Statement | Balance Sheet | ||||
| Sales | $23,600 | Assets | $115,000 | Debt | $46,600 |
| Costs | 16,000 | Equity | 68,400 | ||
| Taxable income | $7,600 | Total | $115,000 | Total | $115,000 |
| Taxes (24%) | 1,824 | ||||
| Net income | $5,776 | ||||
| Assets and costs are proportional to sales. Debt and equity are not. A dividend of $1,480 was paid, and the company wishes to maintain a constant payout ratio. Next year's sales are projected to be $28,200. |
| What is the external financing needed? |
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Multinational Business Finance
Authors: David Eiteman, Arthur Stonehill, Michael Moffett
15th Global Edition
129227008X, 9781292270081
