Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Sales
Costs
Other expenses
Earnings before interest and taxes
Interest paid
Taxable income
Taxes (21%)
Net income
Dividends
Addition to retained earnings
Current assets
Cash
CROSBY, INCORPORATED
2023 Income Statement
Accounts receivable
Inventory
Total
Total assets
Assets
Fixed assets
Net plant and equipment
EFN
$ 21,340
44,280
98,960
$ 164,580
$ 430,000
$ 28,203
65,807
$ 594,580
$ 754,000
589,000
25,000
$ 140,000
21,000
CROSBY, INCORPORATED
Balance Sheet as of December 31, 2023
$ 119,000
24,990
$ 94,010
Liabilities and Owners' Equity
Current liabilities
Accounts payable
Notes payable
Total
Long-term debt
Owners' equity
Common stock and paid-in surplus
Accumulated retained earnings
Total
Total liabilities and owners' equity
$ 55,500
14,700
$ 70,200
$ 137,000
$ 118,000
269,380
$ 387,380
$ 594,580
If the firm is operating at full capacity and no new debt or equity is issued, what is the external financing needed to support the 25
percent growth rate in sales?
Note: Do not round intermediate calculations.
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Transcribed Image Text:Sales Costs Other expenses Earnings before interest and taxes Interest paid Taxable income Taxes (21%) Net income Dividends Addition to retained earnings Current assets Cash CROSBY, INCORPORATED 2023 Income Statement Accounts receivable Inventory Total Total assets Assets Fixed assets Net plant and equipment EFN $ 21,340 44,280 98,960 $ 164,580 $ 430,000 $ 28,203 65,807 $ 594,580 $ 754,000 589,000 25,000 $ 140,000 21,000 CROSBY, INCORPORATED Balance Sheet as of December 31, 2023 $ 119,000 24,990 $ 94,010 Liabilities and Owners' Equity Current liabilities Accounts payable Notes payable Total Long-term debt Owners' equity Common stock and paid-in surplus Accumulated retained earnings Total Total liabilities and owners' equity $ 55,500 14,700 $ 70,200 $ 137,000 $ 118,000 269,380 $ 387,380 $ 594,580 If the firm is operating at full capacity and no new debt or equity is issued, what is the external financing needed to support the 25 percent growth rate in sales? Note: Do not round intermediate calculations.
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