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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 $3,400 Current liabilities $790 Costs
The most recent financial statements for Summer Tyme, Inc., are shown here: |
Income Statement | Balance Sheet | ||||
Sales | $4,300 | Current assets | $3,400 | Current liabilities | $790 |
Costs | 2,600 | Fixed assets | 6,300 | Long-term debt | 3,500 |
Taxable income | $1,700 | Equity | 5,410 | ||
Taxes (33%) | 561 | Total | $9,700 | Total | $9,700 |
Net income | $1,139 | ||||
Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. The company maintains a constant 60 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.) |
$1,855.5
$875
$1,658
$1,708
$1,608
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