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The most recent financial statements for Martin, Inc., are shown here: Income Statement Sales $ 30,000 Costs (18,000 ) Taxable income $ 12,000 Taxes(34%) (4,080
The most recent financial statements for Martin, Inc., are shown here:
Income Statement | |||
Sales | $ | 30,000 | |
Costs | (18,000 | ) | |
Taxable income | $ | 12,000 | |
Taxes(34%) | (4,080 | ) | |
Net income | $ | 7,920 | |
Balance Sheet | |||||||
Assets | $ | 114,000 | Debt | $ | 45,000 | ||
Equity | 69,000 | ||||||
Total | $ | 114,000 | Total | $ | 114,000 | ||
Assets and costs are proportional to sales. Debt and equity are not. A dividend of $1,030 was paid, and Martin wishes to maintain a constant payout ratio. Next years sales are projected to be $36,900. What is the external financing needed? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
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