Question
The most recent financial statements for Mixton, Incorporated, are shown here: Income Statement Balance Sheet Sales $ 39,400 Assets $ 144,000 Debt $ 41,500 Costs
The most recent financial statements for Mixton, Incorporated, are shown here:
Income Statement Balance Sheet Sales $ 39,400 Assets $ 144,000 Debt $ 41,500 Costs 26,900 Equity 102,500 Taxable income $ 12,500 Taxes (24%) 3,000 Net income $ 9,500
Assets and costs are proportional to sales; debt and equity are not. A dividend of $3,250 was paid, and the company wishes to maintain a constant payout ratio. Next years sales are projected to be $44,522.
What is the external financing needed? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started