1. The most recent financial statements for Horn, Inc. are show below (assume no income taxes.) Assets and costs are proportional to sales. Debt and equity are not. No dividends are paid. Next year’s sales are projected to be $8,968. What is the external financing needed (EFN)?
Income Statement Balance Sheet
Sales $7,600 Assets $21,700
Debt $9,100
Costs $5,180 Equity $12,600
Net Income $2,420 Total $21,700 Total
$21,700
Growth rate in sales=(8968-7600)/7600=18%
Sales | 8968 |
Costs(5180*1.18) | 6112.4 |
Net income | 2855.6 |
Total assets would be=21700*1.18=25606
Total equity would be=12600+Net income
=12600+2855.6=15455.6
Total assets=Total liabilities+Total equity
Hence external financing needed=25606-(15455.6+9100)
=$1050.4
1. The most recent financial statements for Horn, Inc. are show below (assume no income taxes.)...
The most recent financial statements for Horn, Inc. are show below (assume no income taxes.) Assets and costs are proportional to sales. Debt and equity are not. Not dividends are paid. Next year's sales are projected to be $8.968. What is the external financing needed (EFN)? Income Statement Balance Sheet Sales $7,600 Assets $21,700 Debt $9,100 Costs $5,180 Equity $12,600 Net Income $2,420 Total $21,700 Total $21,700
3. The most recent financial statements for Horn, Inc. are show below (assume no income taxes.) Assets and costs are proportional to sales. Debt and equity are not. Not dividends are paid. Next year's sales are projected to be $8,968. What is the external financing needed (EFN)? Income Statement Balance Sheet Sales $7,600 Assets $21,700 Debt $9,100 Costs $5,180 Equity $12,600 Net Income $2,420 Total $21,700 Total $21,700 с og 4. The most recent financial statements for Smith Corp. are...
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