Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The most recent financial statements for GPS, Inc., are shown here: Income Statement Sales $23,120 Costs $11,132 Taxable Income ? Taxes (40%) ? Net Income

The most recent financial statements for GPS, Inc., are shown here:

Income Statement
Sales $23,120
Costs $11,132
Taxable Income ?
Taxes (40%) ?
Net Income ?

Balance Sheet
Assets $56,917 Debt $21,193
Equity ?

Assets and costs are proportional to sales. Debt and equity are not. A dividend of $1,748 was paid, and the company wishes to maintain a constant payout ratio. Next years sales are projected to be $27,881.

What is the external financing needed? (Negative amount should be indicated by a minus sign.)

(Omit the "$" sign and commas in your response. Enter your answer rounded to 2 decimal places. For example, $1,200.456 should be entered as 1200.46.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Development Finance Innovations For Sustainable Growth

Authors: Nicholas Biekpe, Danny Cassimon, Andrew William Mullineux

1st Edition

331954165X, 978-3319541655

More Books

Students also viewed these Finance questions

Question

What are you curious about regarding Katey?

Answered: 1 week ago

Question

Differentiate tan(7x+9x-2.5)

Answered: 1 week ago

Question

Explain the sources of recruitment.

Answered: 1 week ago

Question

Differentiate sin(5x+2)

Answered: 1 week ago

Question

Compute the derivative f(x)=1/ax+bx

Answered: 1 week ago