Corporate Fin Focused Approach
Corporate Fin Focused Approach
5th Edition
ISBN: 9781285660516
Author: EHRHARDT
Publisher: Cengage
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The most recent financial statements for Monochrome, Incorporated, are shown here:
Income Statement
Sales
Costs
$ 18,300 Assets
15,400
Taxable income
Taxes (21%)
$ 2,900
609
Total
$ 42,300
Balance Sheet
$ 42,300 Debt
Equity
Total
$ 28,900
13,400
$ 42,300
Net income
$ 2,291
Assets and costs are proportional to sales. Debt and equity are not. A dividend of $1,400 was paid, and the company wishes to
maintain a constant payout ratio. Next year's sales are projected to be $21,960.
What is the external financing needed?
Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.
External financing needed
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Transcribed Image Text:The most recent financial statements for Monochrome, Incorporated, are shown here: Income Statement Sales Costs $ 18,300 Assets 15,400 Taxable income Taxes (21%) $ 2,900 609 Total $ 42,300 Balance Sheet $ 42,300 Debt Equity Total $ 28,900 13,400 $ 42,300 Net income $ 2,291 Assets and costs are proportional to sales. Debt and equity are not. A dividend of $1,400 was paid, and the company wishes to maintain a constant payout ratio. Next year's sales are projected to be $21,960. What is the external financing needed? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. External financing needed
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