Question
The most recent financial statements for Cornwall, Inc., are shown here: Income Statement Balance Sheet Sales $ 7,200 Current assets $ 3,900 Current liabilities $
The most recent financial statements for Cornwall, Inc., are shown here: Income Statement Balance Sheet Sales $ 7,200 Current assets $ 3,900 Current liabilities $ 2,200 Costs 5,900 Fixed assets 9,800 Long-term debt 3,750 Taxable income $ 1,300 Equity 7,750 Taxes (34%) 442 Total $ 13,700 Total $ 13,700 Net income $ 858 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 15 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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