Question
The most recent financial statements for Reply, Inc., are shown here: Income Statement Balance Sheet Sales $ 26,500 Assets $ 60,100 Debt $ 27,500 Costs
| The most recent financial statements for Reply, Inc., are shown here: |
| Income Statement | Balance Sheet | ||||||||||
| Sales | $ | 26,500 | Assets | $ | 60,100 | Debt | $ | 27,500 | |||
| Costs | 18,200 | Equity | 32,600 | ||||||||
| Taxable income | $ | 8,300 | Total | $ | 60,100 | Total | $ | 60,100 | |||
| Taxes (40%) | 3,320 | ||||||||||
| Net income | $ | 4,980 | |||||||||
| Assets and costs are proportional to sales. Debt and equity are not. A dividend of $1,800 was paid, and the company wishes to maintain a constant payout ratio. Next years sales are projected to be $30,475. |
| What is the external financing needed? (Do not round intermediate calculations.) |
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Capital As Power
Authors: Jonathan Nitzan, Shimshon Bichler
1st Edition
0415496802, 978-0415496803
