Question

The most recent financial statements for Marpole Inc., are shown here (assuming no income taxes):

Statement of Comprehensive Income				Statement of Financial Position
Sales	$	6,700		Assets	$	15,800		Debt	$	6,300
Costs		4,610						Equity		9,500
Net income	$	2,090		Total	$	15,800		Total	$	15,800

Assets and costs are proportional to sales. Debt and equity are not. No dividends are paid. Next year’s sales are projected to be $9,075.

What is the external financing needed? (Do not round intermediate calculations and round your final answer to 2 decimal places. Omit $ sign in your response.)

External financing needed           $

Answer 1

Increase in sales is ((9075-6700)/6700) 100 Increase in sales is = 35.45% Proforma Income Statement:- Statement of Financial Position :- Amount S Liabilities & Equity Particulars Assets Amount $ Amount $ 9,075.00 Sales Assets (15800*135.45%) 21,401.10 Debt 6,300.00 Equity (9500+2830.86) Less: Costs (9075*(4610/6700)) 6,244.14 12,330.86 18,630.86 Net Income 2,830.86 Total 21.401.10 Total If no dividends are paid, the equity account will increase by the net income Equity is 9500+2830.86 Equity is $ 12,330.86/. EFN = Total assets Total liabilities and equity EFN (21401.10-18630.86) EFN $ 2,770.24/.