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The most recent financial statements for Martin, Inc., are shown here: Income Statement Sales $24,550 -14,730 Costs $9,820 -2,062 Taxable income Taxes (21%) Net income $7,758 Balance Sheet $33,000 60,290 Assets $93,290 Debt Equity Total $93,290 Total $93,290 Assets and costs are proportional to sales. Debt and equity are not. A dividend of $955 was paid, and Martin wishes to maintain a constant payout ratio. Next year's sales are projected to be $29,951. What is the external financing needed? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

The most recent financial statements for Martin, Inc., are shown here: Income Statement Sales $24,550 -14,730 Costs $9,820 -2,062 Taxable income Taxes (21%) Net income $7,758 Balance Sheet $33,000 60,290 Assets $93,290 Debt Equity Total $93,290 Total $93,290 Assets and costs are proportional to sales. Debt and equity are not. A dividend of $955 was paid, and Martin wishes to maintain a constant payout ratio. Next year's sales are projected to be $29,951. What is the external financing needed? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

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 22BEA: The income statement, statement of retained earnings, and balance sheet for Somerville Company are...
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The most recent financial statements for Martin, Inc., are shown here: Income Statement $24,550 -14,730 $9,820 -2,062 Sales Costs Taxable income Taxes (21%) Net income $7,758 Balance Sheet Assets $93,290 Debt $33,000 Equity 60,290 Total $93,290 Total $93,290 Assets and costs are proportional to sales. Debt and equity are not. A dividend of $955 was paid, and Martin wishes to maintain a constant payout ratio. Next year's sales are projected to be $29,951. What is the external financing needed? (Do not round intermediate calculations. Round your answer to 2 decimal places.) EFN
Transcribed Image Text:The most recent financial statements for Martin, Inc., are shown here: Income Statement $24,550 -14,730 $9,820 -2,062 Sales Costs Taxable income Taxes (21%) Net income $7,758 Balance Sheet Assets $93,290 Debt $33,000 Equity 60,290 Total $93,290 Total $93,290 Assets and costs are proportional to sales. Debt and equity are not. A dividend of $955 was paid, and Martin wishes to maintain a constant payout ratio. Next year's sales are projected to be $29,951. What is the external financing needed? (Do not round intermediate calculations. Round your answer to 2 decimal places.) EFN
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