Question
The most recent financial statements for GPS, Inc., are shown here: Income Statement Balance Sheet Sales $23,500 Assets $125,000 Debt $37,600 Costs 17,500 Equity 87,400
The most recent financial statements for GPS, Inc., are shown here: Income Statement Balance Sheet Sales $23,500 Assets $125,000 Debt $37,600 Costs 17,500 Equity 87,400 Taxable income $6,000 Total $125,000 Total $125,000 Taxes (35%) 2,100 Net income $3,900 Assets and costs are proportional to sales. Debt and equity are not. A dividend of $1,510 was paid, and the company wishes to maintain a constant payout ratio. Next year's sales are projected to be $29,200. Required: What is the external financing needed?
Multiple Choice: $20,951
$23,510
$22,231
$27,350
$226,318
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