The most recent finical statements for Moose Tours, Inc., appear below. Sales for 2016 are projected to grow by 20 percent. Interest expense will remain constant; the tax rate and dividend payout rate will also remain constant. Costs, other expenses, current assets, fixed assets, and accounts payable increase spontaneously with sales. If the firm is operating at full capacity and no neb debt or equity issues, what external financing is needed to support the 20 percent growth rates in sales? MOOSE TOURS, INC.2015 Income StatementSales$752,500Costs585,600Other expenses15,400Earnings before interest and taxes$151,500Interest expense11,340Taxable income$140,160Тахes49,056Net income$91,104Dividends$27,331Addition to retained earnings63,773MOOSE TOURS, INC.Balance Sheet as of December 31, 2015AssetsLiabilities and Owners' EquityCurrent assetsCurrent liabilitiesCash$ 21,632Accounts payable$ 58,14034,799Notes payableTotal14,535$ 72,675Accounts receivableInventory74,300Total$130,731 Long-term debt$135,000Owners' equityFixed assetsCommon stock and paid-in surplusRetained earnings$I15,000Net plant and equipment $353,120161,176Total$276,176Total assets$483,851 Total liabilities and owners' equity$483,851

Income statement: The income statement determines the net income of the business by subtracting the…

Answered: The most recent finical statements for…

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter13: Financial Statement Analysis

Section: Chapter Questions

Problem 13.12E

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The most recent finical statements for Moose Tours, Inc., appear below. Sales for 2016 are projected to grow by 20 percent. Interest expense will remain constant; the tax rate and dividend payout rate will also remain constant. Costs, other expenses, current assets, fixed assets, and accounts payable increase spontaneously with sales. If the firm is operating at full capacity and no neb debt or equity issues, what external financing is needed to support the 20 percent growth rates in sales?

MOOSE TOURS, INC.
2015 Income Statement
Sales
$752,500
Costs
585,600
Other expenses
15,400
Earnings before interest and taxes
$151,500
Interest expense
11,340
Taxable income
$140,160
Тахes
49,056
Net income
$91,104
Dividends
$27,331
Addition to retained earnings
63,773
MOOSE TOURS, INC.
Balance Sheet as of December 31, 2015
Assets
Liabilities and Owners' Equity
Current assets
Current liabilities
Cash
$ 21,632
Accounts payable
$ 58,140
34,799
Notes payable
Total
14,535
$ 72,675
Accounts receivable
Inventory
74,300
Total
$130,731 Long-term debt
$135,000
Owners' equity
Fixed assets
Common stock and paid-in surplus
Retained earnings
$I15,000
Net plant and equipment $353,120
161,176
Total
$276,176
Total assets
$483,851 Total liabilities and owners' equity
$483,851

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