Question
The most recent financial statements for Cornwall, Inc., are shown here: Income Statement Balance Sheet Sales $ 5,900 Current assets $ 2,600 Current liabilities $
The most recent financial statements for Cornwall, Inc., are shown here: Income Statement Balance Sheet Sales $ 5,900 Current assets $ 2,600 Current liabilities $ 2,200 Costs 4,900 Fixed assets 9,000 Long-term debt 3,750 Taxable income $ 1,000 Equity 5,650 Taxes (34%) 340 Total $ 11,600 Total $ 11,600 Net income $ 660 Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. The company maintains a constant 20 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.) External financing needed $
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