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The most recent financial statements for GPS, Inc., are shown here: Income Statement Balance Sheet Sales $22,600 Assets $112,000 Debt $39,600 Costs 16,400 Equity 72,400
The most recent financial statements for GPS, Inc., are shown here: |
Income Statement | Balance Sheet | ||||
Sales | $22,600 | Assets | $112,000 | Debt | $39,600 |
Costs | 16,400 | Equity | 72,400 | ||
Taxable income | $6,200 | Total | $112,000 | Total | $112,000 |
Taxes (35%) | 2,170 | ||||
Net income | $4,030 | ||||
Assets and costs are proportional to sales. Debt and equity are not. A dividend of $1,570 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? |
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