External financing needed | Increase in assets - (Increase in current liabilities + Increase in retained earnings) | ||||
Increase in assets | $2,079 | 14850*14% | |||
Increase in current liabilities | $431 | 3075*14% | |||
Increase in Retained earnings | |||||
Net income | $2,712.06 | 2379*1.14 | |||
Less: Dividend paid | $1,220.43 | 2712.06*45% | |||
Addition to retained earnings | $1,491.63 | ||||
External financing needed | 2079-(431+1491.63) | ||||
External financing needed | $156.87 | ||||
Problem 4-5 EFN (LO2] The most recent financial statements for Assouad, Inc., are shown here: Income...
The most recent financial statements for Assouad, Inc., are shown here: Income Statement Sales $10,500 Current $ 4,950 $ 3,075 assets Balance Sheet Current liabilities Long-term 9,900 debt Costs 7,450 Fixed assets 4,610 Taxable income $ 3,050 Equity 7,165 Taxes (22%) 671 Total $14,850 Total $14,850 Net income $ 2,379 Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. The company maintains a constant 45 percent dividend payout ratio. As with every other firm...
4. EFN [LO2] The most recent financial statements for Cardinal, Inc., are shown here: Income Statement Sales $25,400 Assets Costs 17,300 Taxable income $ 8,100 Total Taxes (21%) 1,701 Net income $ 6,399 Balance Sheet $61,000 Debt Equity $61,000 Total $26,900 34,100 $61,000 Assets and costs are proportional to sales. Debt and equity are not. A dividend of $2,100 was paid, and the company wishes to maintain a constant payout ratio. Next year's sales are projected to be $29,210. What...
The most recent financial statements for Assouad, Inc., are shown here: Income Statement Sales $9,500 $ 2,700 Balance Sheet Current Current $ 4,200 assets liabilities Fixed assets 9,400 Long-term debt Costs 6,700 4,260 Taxable income $2,800 Equity 6,640 672 Total $13,600 Taxes (24%) Total $13,600 Net Income $ 2,128 Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. The company maintains a constant 35 percent dividend payout ratio. As with every other firm in...
The most recent financial statements for Assouad, Inc., are shown here: Balance Sheet Income Statement Sales Costs Taxable $3.200 Current $5,400 liabilities assets Current $ 3,300 Long-term 4,820 7,900 Fixed assets 10,200 Long-term Equity 7,480 income Taxes (24%) 768 Total $15,600 Total $15,600 Net income $2,432 Assets, costs, and current liabilities are proportional to sales. Long-term deb are not. The company maintains a constant 40 percent dividend payout ra every other firm in its industry, next year's sales are projected...
The most recent financial statements for Assouad, Inc., are shown here: Income Statement Sales $10,700 Current $ 5,100 $ 3,150 Balance Sheet Current Current assets liabilities Fixed assets 10,000 Long-term debt Costs 7,600 4,680 Taxable income $ 3,100 Equity 7,270 Taxes (24%) 744 Total $ 15,100 Total $15,100 Net income $ 2,356 Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. The company maintains a constant 44 percent dividend payout ratio. As with every...
The most recent financial statements for Assouad, Inc., are shown here: Income Statement Sales $11.900 Balance Sheet Current Current liabilities Long-term Fixed assets 10,600 debt assets $6,000 $ 3,600 Costs 8,500 5,100 Taxable income $3,400 Equity 7,900 Taxes (24%) 816 Total $16,600 Total $16,600 Net income $2,584 Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. The company maintains a constant 45 percent dividend payout ratio. As with every other firm in its industry,...
The most recent financial statements for Assouad, Inc., are shown here: Income Statement Sales Costs Balance Sheet $8,700 Current assets $3,600 Current 6,100 Fixed assets 9,000 Long-ter $ 2,400 liabilities 3,980 debt Taxable income $2,600 Equity 6,220 Taxes (24%) 624 Total $12,600 Total $12,600 Net income $ 1,976 Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. The company maintains a constant 35 percent dividend payout ratio. As with every other firm in its...
The most recent financial statements for Assouad, Inc., are shown here: Income Statement Sales Costs Balance Sheet Current $8,700 assets $3,600 Current $ 2,400 liabilities Long-term 6,100 Fixed assets 9,000 3,980 Taxable income $2,600 Equity 6,220 Taxes (24%) 624 Total $12,600 Total $12,600 Net income $1,976 Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. The company maintains a constant 35 percent dividend payout ratio. As with every other firm in its industry, next...
The most recent financial statements for Assouad, Inc., are shown here: Income Statement Sales Costs Balance Sheet Current 4,800 liabilities Current $3000 $10.300 Current Long term 4,540 7,300 Fixed ässets 9,800 . debt Taxable$3,000 income Equity 7060 Taxes (24%) 720 Total $14.600 Total $14.600 Net income $ 2,280 Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. The company maintains a constant 40 percent dividend payout ratio. As with every other firm in its...
The most recent financial statements for Assouad, Inc., are shown here Income Statement Balance Sheet Current liabilities $4,100 Current assets $4,800 2,500 Fixed assets 6,500 $1,600 $970 3,660 6,670 $11,300 Sales Long-term debt Costs Taxable Equity income Taxes (24%) 384 Total $11,300 Total Net income $1,216 Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. The company maintains a constant 40 percent dividend payout ratio. As with every other firm in its industry, next...