Question
The most recent financial statements for Martin, Inc., are shown here: Income Statement Sales $29,500 Costs 11,400 Taxable income $18,100 Taxes (21%) 3,801 Net income
The most recent financial statements for Martin, Inc., are shown here:
| Income Statement | ||
| Sales | $29,500 | |
| Costs | 11,400 | |
| Taxable income | $18,100 | |
| Taxes (21%) | 3,801 | |
| Net income | $14,299 | |
| Balance Sheet | |||||
| Assets | $82,600 | Debt | $30,000 | ||
| Equity | 52,600 | ||||
| Total | $82,600 | Total | $82,600 | ||
Assets and costs are proportional to sales. Debt and equity are not. A dividend of $1,135 was paid, and Martin wishes to maintain a constant payout ratio. Next years sales are projected to be $34,220. What is the external financing needed?
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Finance A Quantitative Introduction Volume 1
Authors: Piotr Staszkiewicz, Lucia Staszkiewicz
1st Edition
0128015845, 978-0128015841
