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The most recent financial statements for Martin, Inc., are shown here: Income Statement Sales 22,125 Costs -13,275 Taxable income 8,850 Taxes(40%) -3,540 Net income 5,310
The most recent financial statements for Martin, Inc., are shown here:
Income Statement | |
Sales | 22,125 |
Costs | -13,275 |
Taxable income | 8,850 |
Taxes(40%) | -3,540 |
Net income | 5,310 |
Balance Sheet | |||
Assets | 88,500 | Debt | 30,000 |
Equity | 58,500 | ||
Total | 88,500 | Total | 88,500 |
Assets and costs are proportional to sales. Debt and equity are not. A dividend of $940 was paid, and Martin wishes to maintain a constant payout ratio. Next years sales are projected to be $26,550. What is the external financing needed? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
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