Question
The most recent financial statements for Reply, Inc., are shown here: Income Statement Balance Sheet Sales $ 33,900 Assets $ 56,800 Debt $ 22,400 Costs
The most recent financial statements for Reply, Inc., are shown here: Income Statement Balance Sheet Sales $ 33,900 Assets $ 56,800 Debt $ 22,400 Costs 24,800 Equity 34,400 Taxable income $ 9,100 Total $ 56,800 Total $ 56,800 Taxes (40%) 3,640 Net income $ 5,460 Assets and costs are proportional to sales. Debt and equity are not. A dividend of $1,600 was paid, and the company wishes to maintain a constant payout ratio. Next years sales are projected to be $40,680. What is the external financing needed? (Do not round intermediate calculations.)
External financing needed $____
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