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The most recent financial statements for Summer Tyme, Inc., are shown here: Income Statement Balance Sheet Sales $3,600 Current assets $5,200 Current liabilities $790 Costs
The most recent financial statements for Summer Tyme, Inc., are shown here: |
Income Statement | Balance Sheet | ||||
Sales | $3,600 | Current assets | $5,200 | Current liabilities | $790 |
Costs | 2,700 | Fixed assets | 4,700 | Long-term debt | 3,640 |
Taxable income | $900 | Equity | 5,470 | ||
Taxes (31%) | 279 | Total | $9,900 | Total | $9,900 |
Net income | $621 | ||||
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.) |
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