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The most recent financial statements for Summer Tyme, Inc., are shown here: Income Statement Sales $3,800 Current assets Costs 2,100 Fixed assets Taxable income $1,700
The most recent financial statements for Summer Tyme, Inc., are shown here: Income Statement Sales $3,800 Current assets Costs 2,100 Fixed assets Taxable income $1,700 Taxes (33%) 561 Total Net income $1,139 Balance Sheet $4,500 Current liabilities 5,000 Long-term debt Equity $9,500 Total $950 3,650 4,900 $9,500 Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. The company maintains a constant 50 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.) $1,425.62 $1,663.12 $912.5 $1,375.62 $1,475.62
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