Question
The most recent financial statements for Xporter, Inc., are shown here: Income Statement Balance Sheet Sales $ 7,700 Current assets $ 4,400 Current liabilities $
The most recent financial statements for Xporter, Inc., are shown here:
Income Statement Balance Sheet Sales $ 7,700 Current assets $ 4,400 Current liabilities $ 2,200 Costs 6,150 Fixed assets 8,100 Long-term debt 3,750 Taxable income $ 1,550 Equity 6,550 Taxes (34%) 527 Total $ 12,500 Total $ 12,500 Net income $ 1,023 Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. The company maintains a constant 20 percent dividend payout ratio. As with every other firm in its industry, next years sales are projected to increase by exactly 10 percent. What is the external financing needed?
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