Question
The most recent financial statements for GPS, Inc., are shown here: Income StatementBalance SheetSales$26,400Assets$65,000Debt$27,400Costs17,300Equity37,600Taxable income$9,100Total$65,000Total$65,000Taxes (40%)3,640Net income$5,460 Assets and costs are proportional to sales. Debt
The most recent financial statements for GPS, Inc., are shown here:
Income StatementBalance SheetSales$26,400Assets$65,000Debt$27,400Costs17,300Equity37,600Taxable income$9,100Total$65,000Total$65,000Taxes (40%)3,640Net income$5,460
Assets and costs are proportional to sales. Debt and equity are not. A dividend of $2,300 was paid, and the company wishes to maintain a constant payout ratio. Next year's sales are projected to be $30,360.
What is the external financing needed?
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
10th Canadian edition
1259261018, 1259261015, 978-1259024979
