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The most recent financial statements for GPS, Inc., are shown here: Income Statement Sales $22,221 Costs $12,764 Taxable Income ? Taxes (40%) ? Net Income
The most recent financial statements for GPS, Inc., are shown here:
Income Statement Sales $22,221 Costs $12,764 Taxable Income ? Taxes (40%) ? Net Income ?
Balance Sheet Assets $54,732 Debt $22,733 Equity ?
Assets and costs are proportional to sales. Debt and equity are not. A dividend of $1,504 was paid, and the company wishes to maintain a constant payout ratio. Next years sales are projected to be $26,375.
What is the external financing needed?
The most recent financial statements for GPS, Inc., are shown here:
| Income Statement | |
| Sales | $22,221 |
| Costs | $12,764 |
| Taxable Income | ? |
| Taxes (40%) | ? |
| Net Income | ? |
| Balance Sheet | |||
| Assets | $54,732 | Debt | $22,733 |
| Equity | ? | ||
Assets and costs are proportional to sales. Debt and equity are not. A dividend of $1,504 was paid, and the company wishes to maintain a constant payout ratio. Next years sales are projected to be $26,375.
What is the external financing needed?
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