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The most recent financial statements for Summer Tyme, Inc., are shown here: Income Statement Balance Sheet Sales $4,300 Current assets $5,000 Current liabilities $900 Costs
The most recent financial statements for Summer Tyme, Inc., are shown here: |
Income Statement | Balance Sheet | ||||
Sales | $4,300 | Current assets | $5,000 | Current liabilities | $900 |
Costs | 2,100 | Fixed assets | 5,600 | Long-term debt | 3,630 |
Taxable income | $2,200 | Equity | 6,070 | ||
Taxes (30%) | 660 | Total | $10,600 | Total | $10,600 |
Net income | $1,540 | ||||
Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. The company maintains a constant 40 percent dividend payout ratio. As with every other firm in its industry, next year's sales are projected to increase by exactly 25 percent. |
Required: |
What is the external financing needed? |
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