The most recent financial statements for Assouad, Incorporated, are shown here:Income Statement$ 8,500SalesCosts5,950Taxable income $ 2,550Taxes (22%)561Net income $ 1,989Balance SheetCurrent assets $3,450Fixed assets8,900Total$12,350Current liabilitiesLong-term debtEquityTotal$ 2,3253,9106.115$12,350Assets, costs, and current liabilities are proportional to sales. Long-term debt and equityare not. The company maintains a constant 45 percent dividend payout ratio. As withevery other firm in its industry, next year's sales are projected to increase by exactly 16percent. What is the external financing needed? (Do not round intermediatecalculations and round your answer to 2 decimal places, e.g., 32.16.)

For increase in sales there is need of external finance required to meet the increase in assets and…

Answered: ent ,500 Current assets ,950 Fixed…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Glendale Ltd. reported the following selected data at December 31, 2021 and 2020: 2021 2020 Total assets $515,000 $529,000 Total liabilities 309,000 302,000 Interest expense 13,000 12,000 Income tax expense 25,500 22,500 Profit 85,000 75,000 Calculate Glendale Ltd.'s (a) debt to total assets and (b) interest coverage ratios for each of the years 2021 and 2020 and comment on any trends.

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ent ,500 Current assets ,950 Fixed assets ,550 561 1,989 Total Balance Sheet $3,450 8,900 $ 12,350 Current liabilities Long-term debt Equity Total