Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The most recent financial statements for Heine, Inc., are shown here: Income Statement Balance Sheet Sales $ 23,600 Assets $ 54,300 Debt $ 20,300 Costs
The most recent financial statements for Heine, Inc., are shown here:
Income Statement | Balance Sheet | ||||||||||
Sales | $ | 23,600 | Assets | $ | 54,300 | Debt | $ | 20,300 | |||
Costs | 14,600 | Equity | 34,000 | ||||||||
Taxable income | $ | 9,000 | Total | $ | 54,300 | Total | $ | 54,300 | |||
Taxes (40%) | 3,600 | ||||||||||
Net income | $ | 5,400 | |||||||||
Assets and costs are proportional to sales. Debt and equity are not. A dividend of $2,500 was paid, and the company wishes to maintain a constant payout ratio. Next years sales are projected to be $26,904. |
What is the external financing needed? (Do not round intermediate calculations.) |
External financing needed | $ |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started