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The most recent financial statements for Cornwall, Inc., are shown here: Income Statement Balance Sheet Sales $ 6,000 Current assets $ 2,700 Current liabilities $
The most recent financial statements for Cornwall, Inc., are shown here: |
Income Statement | Balance Sheet | ||||||||||
Sales | $ | 6,000 | Current assets | $ | 2,700 | Current liabilities | $ | 2,200 | |||
Costs | 4,950 | Fixed assets | 9,100 | Long-term debt | 3,750 | ||||||
Taxable income | $ | 1,050 | Equity | 5,850 | |||||||
Taxes (34%) | 357 | Total | $ | 11,800 | Total | $ | 11,800 | ||||
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 years sales are projected to increase by exactly 10 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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