Question
The most recent income statement and balance sheet for Highway. Corp, are presented below: Income Statement Balance Sheet Sales $4,000 Current assets $4,000 Current liabilities
| The most recent income statement and balance sheet for Highway. Corp, are presented below: |
| Income Statement | Balance Sheet | ||||
| Sales | $4,000 | Current assets | $4,000 | Current liabilities | $880 |
| Costs | 2,700 | Fixed assets | 6,000 | Long-term debt | 3,650 |
| Taxable income | $1,300 | Equity | 5,470 | ||
| Taxes (21%) | 273 | Total | $10,000 | Total | $10,000 |
| Net income | $1,027 | ||||
| Costs, current liabilities and assets are proportional to sales. Long-term debt and equity are not. The company maintains a constant 60 percent dividend payout ratio. Next year's sales are projected to increase by exactly 25 percent. |
| Project external financing needed by the firm? |
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Introduction To Finance Markets, Investments, And Financial Management
Authors: Ronald W Melicher, Edgar Norton
13th Edition
0470128925, 9780470128923
