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The most recent financial statements for GPS, Inc., are shown here: Income Statement Balance Sheet Sales $24,000 Assets $119,000 Debt $40,600 Costs 16,400 Equity 78,400
The most recent financial statements for GPS, Inc., are shown here: Income Statement Balance Sheet Sales $24,000 Assets $119,000 Debt $40,600 Costs 16,400 Equity 78,400 Taxable income $7,600 Total $119,000 Total $119,000 Taxes (30%) 2,280 Net income $5,320 Assets and costs are proportional to sales. Debt and equity are not. A dividend of $1,500 was paid, and the company wishes to maintain a constant payout ratio. Next year's sales are projected to be $28,000. Required: What is the external financing needed?
$10,438
$9,204
$11,673
$15,376
$189,700
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