come Statement Balance Sheet $ 40,000 27,200 $ 12,800 Sales Costs Taxable income Taxes (22%) Net income 2,816 $ 9,984 Assets $ 147,000 Debt $ 43,000 Equity 104,000 Total $ 147,000 Total $147,000 Assets and costs are proportional to sales; debt and equity are not. A dividend of $3,400 was paid, and the company wishes to maintain a constant payo atio. Next year's sales are projected to be $46,400. What is the external financing needed? o not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

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
icon
Related questions
Topic Video
Question
The most recent financial statements for Mixton, Incorporated, are shown here:
Income Statement Balance Sheet
$ 40,000
27,200
$ 12,800
2,816
$ 9,984
Sales
Costs
Taxable income
Taxes (22%)
Net income
Assets $ 147,000 Debt $43,000
Equity 104,000
Total $ 147,000 Total $147,000
Assets and costs are proportional to sales; debt and equity are not. A dividend of $3,400 was paid, and the company wishes to maintain a constant payout
ratio. Next year's sales are projected to be $46,400.
What is the external financing needed?
(Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
Transcribed Image Text:The most recent financial statements for Mixton, Incorporated, are shown here: Income Statement Balance Sheet $ 40,000 27,200 $ 12,800 2,816 $ 9,984 Sales Costs Taxable income Taxes (22%) Net income Assets $ 147,000 Debt $43,000 Equity 104,000 Total $ 147,000 Total $147,000 Assets and costs are proportional to sales; debt and equity are not. A dividend of $3,400 was paid, and the company wishes to maintain a constant payout ratio. Next year's sales are projected to be $46,400. What is the external financing needed? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 3 images

Blurred answer
Knowledge Booster
Ratio Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education