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The most recent financial statements for Dixon Diamonds, are shown here: Income Statement Balance Sheet Sales $ 9,300 Current assets $ 4,050 Current liabilities $
The most recent financial statements for Dixon Diamonds, are shown here: |
Income Statement | Balance Sheet | ||||||||||
Sales | $ | 9,300 | Current assets | $ | 4,050 | Current liabilities | $ | 2,625 | |||
Costs | 6,550 | Fixed assets | 9,300 | Long-term debt | 4,190 | ||||||
Taxable income | $ | 2,750 | Equity | 6,535 | |||||||
Taxes (22%) | 605 | Total | $ | 13,350 | Total | $ | 13,350 | ||||
Net income | $ | 2,145 | |||||||||
Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. The company maintains a constant 44 percent dividend payout ratio. As with every other firm in its industry, next years sales are projected to increase by exactly 17 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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