ZuoTi.Pro
Question

The most recent financial statements for Cardinal, Inc., are shown here: Income Statement Balance Sheet   Sales...

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 $36,424.

What is the external financing needed?
business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Growth rate in sales=(36424-31400)/31400=16%

Dividend payout ratio=Dividend payout/Net income

=3800/9842

=0.386100386

Sales 36,424
Costs(18450*1.16) 21402
Taxable income 15022
Taxes(15022*24%) 3605.28
Net income 11416.72
Less:Dividends(0.386100386*11416.72) 4408
Addition to retained earnings 7008.72

Total assets would be=$74000*1.16=$85840

Total equity would be=$36600+Addition to retained earnings

=36600+7008.72

=$43608.72

Total assets=Total equity+Total debt

Hence external financing needed=$85840-($43608.72+37400)

=$4831.28

0 0
Add a comment
Know the answer?
Add Answer to:
The most recent financial statements for Cardinal, Inc., are shown here: Income Statement Balance Sheet   Sales...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • The most recent financial statements for Cardinal, Inc., are shown here: Income Statement Balance Sheet   Sales...

    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 Cardinal, Inc., are shown here: Income Statement Sales Costs Balance...

    The most recent financial statements for Cardinal, Inc., are shown here: Income Statement Sales Costs Balance Sheet $29,800 Assets $70,800 Debt $34,600 Equity 36,200 18,250 Taxable 11,550 Tota $70,800 Total $70,800 income Taxes (22%) 2,541 Net income $9,009 Assets and costs are proportional to sales. Debt and equity are not. A dividend of $3,400 was paid, and the company wishes to maintain a constant payout ratio. Next year's sales are projected to be $33,972 What is the external financing needed?...

  • The most recent financial statements for Cardinal, Inc., are shown here: Income Statement Sales Costs Balance...

    The most recent financial statements for Cardinal, Inc., are shown here: Income Statement Sales Costs Balance Sheet $29,800 Assets $70,800 Debt $34,600 Equity 36,200 18,250 $11,550 Total $70,800 Total $70,800 income Taxes (22%) 2541 Net income $ 9,009 Assets and costs are proportional to sales. Debt and equity are not. A dividend of $3,400 was paid, and the company wishes to maintain a constant payout ratio. Next year's sales are projected to be $33,972. What is the external financing needed?...

  • The most recent financial statements for Sam Inc, are shown here: Income Statement Balance Sheet Sales...

    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?

  • The most recent financial statements for Heine, Inc., are shown here:    Income Statement Balance Sheet...

    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 Balance Sheet...

    The most recent financial statements for Heine, Inc., are shown here:    Income Statement Balance Sheet   Sales $ 30,000   Assets $ 56,100   Debt $ 20,500   Costs 22,000   Equity 35,600   Taxable income $ 8,000   Total $ 56,100   Total $ 56,100   Taxes (40%) 3,200       Net income $ 4,800       Assets and costs are proportional to sales. Debt and equity are not. A dividend of $2,200 was paid, and the company wishes to maintain a constant payout ratio. Next year’s...

  • The most recent financial statements for Bello, Inc., are shown here:    Income Statement Balance Sheet...

    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...

    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...

  • 4. EFN [LO2] The most recent financial statements for Cardinal, Inc., are shown here: Income Statement...

    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...

    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?...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT