Assets are proportional to sales. If the dividend payout ratio is fixed at 50%, calculate the required total external financing for growth rates in 2023 of (a) 25%, (b) 30%, and (c) 35%. Note: Do not round intermediate calculations. Round your answers to 2 decimal places.

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter8: Liabilities And Stockholders' Equity
Section: Chapter Questions
Problem 8.2E: Evaluate alternative financing plans Obj. 1 Based on the data in Exercise E8-1. discuss factors...
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Here are the abbreviated financial statements for Planner's Peanuts:
(b)
(c)
INCOME STATEMENT, 2022
Sales
Cost
Net income
Assets
Total
$ 5,500
4,300
$ 1,200
25%
30%
35%
2021
$ 8,500
IS
S
$8.500
BALANCE SHEET, YEAR-END
2022
$ 9,000
$ 9,000
Debt
Equity
Total
Answer is complete but not entirely correct.
External
Financing Need
2.275.00
2,726.00
3,177.00
Assets are proportional to sales. If the dividend payout ratio is fixed at 50%, calculate the required total external financing
for growth rates in 2023 of (a) 25%, (b) 30%, and (c) 35%.
Note: Do not round intermediate calculations. Round your answers to 2 decimal places.
2021
$ 823
7,677
$ 8.500
2022
$ 1.000
8,000
$ 9.000
Transcribed Image Text:Here are the abbreviated financial statements for Planner's Peanuts: (b) (c) INCOME STATEMENT, 2022 Sales Cost Net income Assets Total $ 5,500 4,300 $ 1,200 25% 30% 35% 2021 $ 8,500 IS S $8.500 BALANCE SHEET, YEAR-END 2022 $ 9,000 $ 9,000 Debt Equity Total Answer is complete but not entirely correct. External Financing Need 2.275.00 2,726.00 3,177.00 Assets are proportional to sales. If the dividend payout ratio is fixed at 50%, calculate the required total external financing for growth rates in 2023 of (a) 25%, (b) 30%, and (c) 35%. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. 2021 $ 823 7,677 $ 8.500 2022 $ 1.000 8,000 $ 9.000
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