Question

The Manning Company has financial statements as shown next, which are representative of the companys historical average cxisting storc. Among labiltkes, only current labilrcs vary directly with saleS Sales Expenses Eanings belore interest and taxes 5 300,000 Earnings betore tax88 Taxes Eamings atter tavee Dividends 17,100 S 27.000 S 5400 Assets Liabilties and Stockholders Equity Cash Accounts reccivabk 5 ,00 Accounts payable 56,000 Accrued wags 0,000 Accrued laxes 5 25,000 2.250 3 36,000 25,500 Current assets Fixed aa8et8 Current iabilties 85,000 Notes payable Long-term debt Common stock 125 000 Retained earnings 5 221,00D Total asscts Using the percent of sales method, determine whether the company has extemal financing needs, or a surplus of funds. (Hint:A prof margin and payout ratio must be found from the income statement.) Do not round intermediate caleulations.) The tim

Answer 1