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The most recent financial statements for Summer Tyme, Inc., are shown here: Income Statement Balance Sheet Sales $3,800 Current assets $4,200 Current liabilities $860 Costs
The most recent financial statements for Summer Tyme, Inc., are shown here: |
Income Statement | Balance Sheet | ||||
Sales | $3,800 | Current assets | $4,200 | Current liabilities | $860 |
Costs | 2,500 | Fixed assets | 6,300 | Long-term debt | 3,680 |
Taxable income | $1,300 | Equity | 5,960 | ||
Taxes (31%) | 403 | Total | $10,500 | Total | $10,500 |
Net income | $897 | ||||
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? (Do not round your intermediate calculations.) |
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