Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter1: Accounting And The Financial Statements
Section: Chapter Questions
Problem 65BPSB: Problem 1-65B Relationships Among Financial Statements Leno Corporation reported the following...
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Question
Problem 3-8 Calculating EFN
|
The most recent financial statements for Hu, Incorporated, are shown here (assuming no income taxes): |
| Income Statement | Balance Sheet | ||||
|---|---|---|---|---|---|
| Sales | $ 9,600 | Assets | 16,000 | Debt | $ 4,000 |
| Costs | 7,470 | Equity | 12,000 | ||
| Net income | $ 2,130 | Total | 16,000 | Total | $ 16,000 |
|
Assets and costs are proportional to sales; debt and equity are not. No dividends are paid. Next year’s sales are projected to be $11,904. |
|
What is the external financing needed? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) |
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