Question
The Question is at the bottom where the blanks need to be filled The 2015 financial statements for Growth Industries are presented below: INCOME STATEMENT,
The Question is at the bottom where the blanks need to be filled
The 2015 financial statements for Growth Industries are presented below: |
INCOME STATEMENT, 2015 | |||
Sales | $ | 320,000 | |
Costs | 210,000 | ||
EBIT | $ | 110,000 | |
Interest expense | 22,000 | ||
Taxable income | $ | 88,000 | |
Taxes (at 35%) | 30,800 | ||
Net income | $ | 57,200 | |
Dividends | $ 28,600 | ||
Addition to retained earnings | 28,600 | ||
Sales and costs in 2016 are projected to be 20% higher than in 2015. Both current assets and accounts payable are projected to rise in proportion to sales. The fixed assets of Growth Industries are operating at only 75% of capacity. Interest expense in 2016 will equal 10% of long-term debt outstanding at the start of the year. The firm will maintain a dividend payout ratio of .50. |
What is the required external financing over the next year?
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