The most recent financial statements for summer tyme, inc, are shown here: income statement: sales $4,300, costs 2,300, taxable income $ 2,000, taxes (35%) 700, net income $1,300, current assets $4,900, fixed assets 6,500, total $11,400, current liabilities $940, long term debt 3,540, equity 6,920, total 11,400. Assets, cost, and current liabilities are proportional to sales. Long term debt and equity are not. The company maintains a constant 60 percent dividend payout ratio. As with every other firm in its industry, next years sales are projected to increase by exactly 20 percent. What is the external financing needed?

Here are simplified financial statements for Watervan Corporation:   INCOME STATEMENT (Figures in $ millions) Net sales $ 900.00 Cost of goods sold   760.00 Depreciation   50.00 Earnings before interest and taxes (EBIT) $ 90.00 Interest expense   31.00 Income before tax $ 59.00 Taxes   12.39 Net income $ 46.61     BALANCE SHEET (Figures in $ millions)   End of Year   Start of Year Assets               Current assets $ 388     $ 350   Long-term assets   296       241   Total assets $ 684     $ 591   Liabilities and shareholders’ equity               Current liabilities $ 213     $ 176   Long-term debt   127       140   Shareholders’ equity   344       256   Total liabilities and shareholders’ equity $ 684     $ 572     The…

1) The Ivy Corporation shows the following data: Current assets:                                                                                                                                                                                                                                                                              $400,000 Current liabilities:                                                                                                                                                                                                                                                          $210,000 Inventory:                                                                                                                                                                                                                                                                     500,000 Current assets…

Refer to the following selected financial information from a company. Compute the company’s debt-to-equity ratio for Year 2.    Year 2 Year 1 Net sales $ 484,500 $ 427,450 Cost of goods sold 277,500 251,320 Interest expense 10,900 11,900 Net income before tax 68,450 53,880 Net income after tax 47,250 41,100 Total assets 319,500 295,200 Total liabilities 175,400 168,500 Total equity 144,100 126,700 Answer: A. 1.22. B. 1.82. C. 3.36. D. 0.82. E. 2.22.