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The most recent financial statements for Mc Govney Co. are shown here: Income Statement Balance Sheet Sales $ 38,400 Current assets $ 22,400 Long-term debt
| The most recent financial statements for Mc Govney Co. are shown here: |
| Income Statement | Balance Sheet | ||||||||||
| Sales | $ | 38,400 | Current assets | $ | 22,400 | Long-term debt | $ | 53,500 | |||
| Costs | 29,200 | Fixed assets | 77,000 | Equity | 45,900 | ||||||
| Taxable income | $ | 9,200 | Total | $ | 99,400 | Total | $ | 99,400 | |||
| Taxes (34%) | 3,128 | ||||||||||
| Net income | $ | 6,072 | |||||||||
| Assets and costs are proportional to sales. The company maintains a constant 40 percent dividend payout ratio and a constant debt |
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