he most recent financial statements for Kerch, Inc., are shown here (assuming no income taxes):     Income Statement Balance Sheet   Sales $4,500     Assets $14,900     Debt $10,300     Costs  3,450         Equity 4,600       Net income $1,050       Total $14,900       Total $14,900       Assets and costs are proportional to sales. Debt and equity are not. No dividends are paid. Next year's sales are projected to be $5,967.   What is the external financing needed?

Managerial Accounting: The Cornerstone of Business Decision-Making
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ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
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Chapter15: Financial Statement Analysis
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he most recent financial statements for Kerch, Inc., are shown here (assuming no income taxes):

 

  Income Statement Balance Sheet
  Sales $4,500     Assets $14,900     Debt $10,300  
  Costs  3,450         Equity 4,600  
    Net income

$1,050  

    Total

$14,900  

    Total

$14,900  

 
 

Assets and costs are proportional to sales. Debt and equity are not. No dividends are paid. Next year's sales are projected to be $5,967.

 

What is the external financing needed? 

 
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