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The most recent financial statements for Assouad, Incorporated, are shown here: Income Statement Sales $ 9,900 Costs 7,000 Taxable income $2,900 Taxes (24%) 696 Net income $ 2,204 External financing needed Balance Sheet Current assets $4,500 Fixed assets 9,600 Total $ 14,100 Current liabilities Long-term debt Equity Total $ 2,850 4,400 6,850 $ 14,100 Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. The company maintains a constant 45 percent dividend payout ratio. As with every other firm in its industry, next year's sales are projected to increase by exactly 16 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 Sales $ 9,900 Costs 7,000 Taxable income $2,900 Taxes (24%) 696 Net income $ 2,204 External financing needed Balance Sheet Current assets $4,500 Fixed assets 9,600 Total $ 14,100 Current liabilities Long-term debt Equity Total $ 2,850 4,400 6,850 $ 14,100 Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. The company maintains a constant 45 percent dividend payout ratio. As with every other firm in its industry, next year's sales are projected to increase by exactly 16 percent. What is the external financing needed? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 50E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...
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The most recent financial statements for Assouad, Incorporated, are shown here: Income Statement Sales Costs $ 9,900 Current assets $4,500 Fixed assets 9,600 7,000 Taxable income $2,900 Taxes (24%) 696 Net income $ 2,204 External financing needed Balance Sheet Total $ 14,100 Current liabilities Long-term debt Equity Total $2,850 4,400 6,850 $ 14,100 Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. The company maintains a constant 45 percent dividend payout ratio. As with every other firm in its industry, next year's sales are projected to increase by exactly 16 percent. What is the external financing needed? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Transcribed Image Text:The most recent financial statements for Assouad, Incorporated, are shown here: Income Statement Sales Costs $ 9,900 Current assets $4,500 Fixed assets 9,600 7,000 Taxable income $2,900 Taxes (24%) 696 Net income $ 2,204 External financing needed Balance Sheet Total $ 14,100 Current liabilities Long-term debt Equity Total $2,850 4,400 6,850 $ 14,100 Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. The company maintains a constant 45 percent dividend payout ratio. As with every other firm in its industry, next year's sales are projected to increase by exactly 16 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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