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The most recent financial statements for Heine, Inc., are shown here: Income Statement Sales Costs Balance Sheet $26,900 Asse
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Answer #1

External financing needed = Assets / current sales * (projected sales - current sales ) - profit margin * projected sales * retention ratio

= 63700 / 26900 * (30935-26900) - 18.07%*30935 *(1-0.4115)

    = 63700 / 26900 * (30935-26900) - 18.07%*30935 *0.5885

    = 9555 - 3289

= $6266

Note:- Projected Income statement

   sales = 30935

less: cost[18800/26900*30935] = 21620

Taxable income = 9315

less: taxes (40%) = 3726

   net income = 5589

1) Profit margin ratio = 5589 / 30935

2) Dividend payout ratio = 2300 / 5589

= 41.15%

  

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