Question
The most recent financial statements for Mixton, Incorporated, are shown here: INCOME STATEMENT BALANCE SHEET Sales $ 47,000 Assets $ 107,700 Debt $ 30,000 Costs
The most recent financial statements for Mixton, Incorporated, are shown here:
INCOME STATEMENT | BALANCE SHEET | ||||
Sales | $ 47,000 | Assets | $ 107,700 | Debt | $ 30,000 |
Costs | 37,900 |
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| Equity | 77,700 |
Taxable income | $ 9,100 | Total | $ 107,700 | Total | $ 107,700 |
Taxes (22%) | 2,002 |
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Net income | $ 7,098 |
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Assets and costs are proportional to sales. Debt and equity are not. A dividend of $2,400 was paid, and the company wishes to maintain a constant payout ratio. Next years sales are projected to be $54,520. What is the external financing needed?
Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.
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