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The most recent financial statements for Locke, Inc., are shown here: INCOME STATEMENT BALANCE SHEET Sales $ 60,000 Assets $ 128,500 Debt $ 41,700 Costs
The most recent financial statements for Locke, Inc., are shown here: |
INCOME STATEMENT | BALANCE SHEET | ||||||||||
Sales | $ | 60,000 | Assets | $ | 128,500 | Debt | $ | 41,700 | |||
Costs | 49,600 | Equity | 86,800 | ||||||||
Taxable income | $ | 10,400 | Total | $ | 128,500 | Total | $ | 128,500 | |||
Taxes (25%) | 2,600 | ||||||||||
Net income | $ | 7,800 | |||||||||
Assets and costs are proportional to sales; debt and equity are not. A dividend of $3,700 was paid, and the company wishes to maintain a constant payout ratio. Next years sales are projected to be $70,800. |
What is the external financing needed? (Do not round intermediate calculations and enter your answer to the nearest whole number, e.g., 32.) |
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