P4-3 Calculating EFN [LO2]The most recent financial statements for Kerch, Incorporated, are shown here (assumingno income taxes):Income StatementSalesCostsNetincomeMultiple ChoiceOOO$4,800 Assets $15,2003,390$ 1,410Assets and costs are proportional to sales. Debt and equity are not. No dividends arepaid. Next year's sales are projected to be $5,969.What is the external financing needed?O$1,698$1,818Balance SheetDebtEquity$2,228$2,073Total $15,200$ 10,9004,300Total $15,200

Working Note#1Calculation of % increase in sales% increase in sales=% increase in sales=% increase…

4-3 Calculating EFN [LO2] the most recent financial statements for Kerch, Incorporated, are shown here (assuming o income taxes): Income Statement Sales Costs Net income Balance Sheet $4,800 Assets $15,200 Debt 3,390 $ 10,900 4,300 Equity $1,410 Total $15,200 Total $15,200 assets and costs are proportional to sales. Debt and equity are not. No dividends are aid. Next year's sales are projected to be $5.969. What is the external financing needed? Multiple Choice O $1,698 $1,818 O $2,228 O $2,073

4-3 Calculating EFN [LO2] the most recent financial statements for Kerch, Incorporated, are shown here (assuming o income taxes): Income Statement Sales Costs Net income Balance Sheet $4,800 Assets $15,200 Debt 3,390 $ 10,900 4,300 Equity $1,410 Total $15,200 Total $15,200 assets and costs are proportional to sales. Debt and equity are not. No dividends are aid. Next year's sales are projected to be $5.969. What is the external financing needed? Multiple Choice O $1,698 $1,818 O $2,228 O $2,073

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter2: Analysis Of Financial Statements

Section: Chapter Questions

Problem 18PROB

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