Question

The most recent financial statements for Bello, Ic., are shown here: Income Statement Balance Sheet $ 46,000 Assets $153,000 $41,200 27,800 Sales Debt Costs Equity 107,000 polnts Taxable $ 13,400 $153,000 $153,000 Total Total income eBook Taxes (23%) 3,082 Net income $ 10,318 Hint Print Assets and costs are proportional to sales; debt and equity are not. A dividend of $3,700 was paid, and the company wishes to maintain a constant payout ratio. Next year's sales are projected to be $47,792. References What is the external financing needed? (Do not round intermediate calculations.) External financing needed

Answer 1

fix C =F5-45 D E G E10 : X V A B Income Statement 2 Sales $ Less: Costs $ 4 Taxable income $ 5 Less: Tax Net income 7 Less: Dividends 8 Retained Earnings $ F Amount $ 177,480 Debt Equity H Amount 46,000 114,677 Assets $ $ 47,792 32,248 15,544 3,575 11,969 4,292 7,677 Total assets $ 177,480 Total liabilities and equity $ 160,677 10 External financing is needed $ 16,803

Amount =153000*47792/41200 Debt Equity H. Amount 46000 =107000+C8 ДА В DE Income Statement 2 Sales 47792 Assets 3 Less: Costs =27800*47792/41200 Taxable income =+C2-C3 5 Less: Tax =+C4*0.23 Total assets Net income =C4-C5 Less: Dividends =C6*(3700/10318) 8 Retained Earnings =C6-C7 9 =SUM(F2:54) Total liabilities and equity =SUM(H2:H4) 10 External financing is needed =F5-H5

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