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The most recent financial statements for Locke, Inc., are shown here: INCOME STATEMENT BALANCE SHEET Sales $ 52,000 Assets $ 115,700 Debt $ 34,500 Costs
The most recent financial statements for Locke, Inc., are shown here: |
INCOME STATEMENT | BALANCE SHEET | ||||||||||
Sales | $ | 52,000 | Assets | $ | 115,700 | Debt | $ | 34,500 | |||
Costs | 42,400 | Equity | 81,200 | ||||||||
Taxable income | $ | 9,600 | Total | $ | 115,700 | Total | $ | 115,700 | |||
Taxes (22%) | 2,112 | ||||||||||
Net income | $ | 7,488 | |||||||||
Assets and costs are proportional to sales; debt and equity are not. A dividend of $2,900 was paid, and the company wishes to maintain a constant payout ratio. Next years sales are projected to be $61,360. |
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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