The most recent financial statements for Assouad, Incorporated, are shown here: Income Statement Balance Sheet $ Sales Costs Current assets $5,100 Current liabilities $ 3,150 10,700 7,600 Fixed assets 10,000 Long-term debt 4,680 Taxable income $3,100 Equity 7,270 Taxes (24%) 744 Total $ 15,100 Total $ 15,100 Net income $ 2,356 Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. The company maintains a constant 44 percent dividend payout ratio. As with every other firm in its industry, next year's sales are projected to increase by exactly 15 percent. What is the external financing needed? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
The most recent financial statements for Assouad, Incorporated, are shown here: Income Statement Balance Sheet $ Sales Costs Current assets $5,100 Current liabilities $ 3,150 10,700 7,600 Fixed assets 10,000 Long-term debt 4,680 Taxable income $3,100 Equity 7,270 Taxes (24%) 744 Total $ 15,100 Total $ 15,100 Net income $ 2,356 Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. The company maintains a constant 44 percent dividend payout ratio. As with every other firm in its industry, next year's sales are projected to increase by exactly 15 percent. What is the external financing needed? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![The most recent financial statements for Assouad, Incorporated, are shown here:
Income Statement
Balance Sheet
$
Sales
Costs
Current assets $5,100
Current liabilities
$ 3,150
10,700
7,600
Fixed assets
10,000
Long-term debt
4,680
Taxable income $3,100
Equity
7,270
Taxes (24%)
744
Total
$ 15,100
Total
$ 15,100
Net income $ 2,356
Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity
are not. The company maintains a constant 44 percent dividend payout ratio. As with
every other firm in its industry, next year's sales are projected to increase by exactly 15
percent. What is the external financing needed? (Do not round intermediate
calculations and round your answer to 2 decimal places, e.g., 32.16.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3c85d146-9f2e-4f18-b716-ebf731efd2c6%2F10c15f21-7b9d-43a2-82d2-c0280017338a%2F7585f8q7_processed.png&w=3840&q=75)
Transcribed Image Text:The most recent financial statements for Assouad, Incorporated, are shown here:
Income Statement
Balance Sheet
$
Sales
Costs
Current assets $5,100
Current liabilities
$ 3,150
10,700
7,600
Fixed assets
10,000
Long-term debt
4,680
Taxable income $3,100
Equity
7,270
Taxes (24%)
744
Total
$ 15,100
Total
$ 15,100
Net income $ 2,356
Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity
are not. The company maintains a constant 44 percent dividend payout ratio. As with
every other firm in its industry, next year's sales are projected to increase by exactly 15
percent. What is the external financing needed? (Do not round intermediate
calculations and round your answer to 2 decimal places, e.g., 32.16.)
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