The most recent financial statements for Sam Inc, are shown here:
Income Statement | Balance Sheet | ||||
Sales | $25,400 | Assets | $61,000 | Debt | $26,900 |
Costs | $17,300 | Equity | $34,100 | ||
Taxable Income | $8,100 | Total | $61,000 | Total | $61,000 |
Taxes (21%) | $1,701 | ||||
Net Income | $6,399 |
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 is the external Financing needed?
Next year’s sales are projected to be $29,210 = S1
Last year's sales, S0 = 25,400
Growth in sales = g = S1 / S0 - 1 = 29,210 / 25,400 - 1 = 15.00%
Net profit margin, PM = Net income last year / S0 = 6,399 / 25,400 = 25.19%
Dividend payout ratio, D = Dividend paid last year / Net income of last year = 2,100 / 6,399 = 32.82%
The external Financing needed (in the absence of any spontaneous
liability) = A0 x g - S1 x PM x (1 - D) = 61,000 x 15% - 29,210 x
25.19% x (1 - 32.82%) = $ 4,206
The most recent financial statements for Sam Inc, are shown here: Income Statement Balance Sheet Sales...
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...
2 The most recent financial statements for Cardinal, Inc, are shown here: 10 points Sales Costs $25,400 Assets $61,000 Debt$26,900 Equity 34,100 17,300 Taxable s $8,100 Total$61,000 Total $61,000 Income Hint Taxes (21%) 1701 Print Net Income$ 6,399 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 is the external financing needed?...
2.
Income Statement Sales Costs Balance Sheet $25,400 Assets $61,000 Debt $26,900 Equity 34,100 17,300 Taxable 8,100 Total $61.000 Total $ 61000 income Taxes (21%) 1701 Net incomes 6,399 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 is the external financing needed? (Do not round intermediate calculations.)
2.
Income Statement Sales Costs Balance Sheet $25,400 Assets $61,000 Debt $26,900 Equity 34,100 17,300 Taxable 8,100 Total $61.000 Total $ 61000 income Taxes (21%) 1701 Net incomes 6,399 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 is the external financing needed? (Do not round intermediate calculations.)
The most recent financial statements for Heine, Inc., are shown here: Income Statement Balance Sheet Sales $ 28,200 Assets $ 57,500 Debt $ 25,300 Costs 20,100 Equity 32,200 Taxable income $ 8,100 Total $ 57,500 Total $ 57,500 Taxes (40%) 3,240 Net income $ 4,860 Assets and costs are proportional to sales. Debt and equity are not. A dividend of $1,600 was paid, and the company wishes to maintain a constant payout ratio. Next year’s...
The most recent financial statements for Heine, Inc., are shown here: Income Statement Sales Costs Balance Sheet $ 26,900 18,800 $ 63,700 $ 27,900 35,800 Assets Debt Equity $ 63,700 $ 8,100 $ 63,700 Total Taxable income Total Taxes (40%) 3,240 $ 4,860 Net income Assets and costs are proportional to sales. Debt and equity are not. A dividend of $2,300 was paid, and the company wishes to maintain a constant payout ratio. Next year's sales are projected to be...
The most recent financial statements for Cardinal, Inc., are shown here: Income Statement Balance Sheet Sales $ 31,400 Assets $ 74,000 Debt $ 37,400 Costs 18,450 Equity 36,600 Taxable income $ 12,950 Total $ 74,000 Total $ 74,000 Taxes (24%) 3,108 Net income $ 9,842 Assets and costs are proportional to sales. Debt and equity are not. A dividend of $3,800 was paid, and the company wishes to maintain a constant payout ratio. Next year’s sales are projected to be...
The most recent financial statements for Cardinal, Inc., are shown here: Income Statement Balance Sheet Sales $ 33,000 Assets $ 77,200 Debt $ 40,200 Costs 18,650 Equity 37,000 Taxable income $ 14,350 Total $ 77,200 Total $ 77,200 Taxes (24%) 3,444 Net income $ 10,906 Assets and costs are proportional to sales. Debt and equity are not. A dividend of $4,200 was paid, and the company wishes to maintain a constant payout ratio. Next year’s sales are projected to be...
The most recent financial statements for Bello, Inc., are shown here: Income Statement Balance Sheet Sales $ 40,800 Assets $ 151,000 Debt $ 45,000 Costs 27,600 Equity 106,000 Taxable income $ 13,200 Total $ 151,000 Total $ 151,000 Taxes (21%) 2,772 Net income $ 10,428 Assets and costs are proportional to sales; debt and equity are not. A dividend of $3,600 was paid, and the company wishes to maintain a constant payout ratio. Next year’s sales are projected...
The most recent financial statements for Bello, Inc., are shown here: Income Statement Balance Sheet Sales $ 38,400 Assets $ 139,000 Debt $ 39,000 Costs 26,400 Equity 100,000 Taxable income $ 12,000 Total $ 139,000 Total $ 139,000 Taxes (24%) 2,880 Net income $ 9,120 Assets and costs are proportional to sales; debt and equity are not. A dividend of $3,000 was paid, and the company wishes to maintain a constant payout ratio. Next year’s sales are projected...