Assume a constant profit margin and dividend payout ratio. Also,assume that this firm’s assets and liabilities all varyproportionately with sales. If sales are projected to increase by10 percent, what is the external financing needed for the followingyear? Hint: In order to determine this amount, you must firstconstruct a forecasted income statement. What if sales are expectedto increase by 20%? Income Statement 2015 Sales 17300 Cost of goodssold 10600 Depreciation 3280 EBIT 3450 Interest 680 EBT 2770 Tax940 Net Income (EAT) 1830 Dividends 450 Balance Sheet AssetsCurrent Assets Cash and securities 350 Accounts receivable 940Inventories 2360 Total current assets 3650 Net fixed assets 10850Total assets 14500 Liabilities and owners’ equity Currentliabilities Bank loan 0 Accounts payable 1920 Total currentliabilities 1920 Long-term debt 3500 Common stock 7500 Retainedearnings 1580 Total liabilities and owners’ equity 14500
“Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!”
What Students Are Saying About Us
.......... Customer ID: 12*** | Rating: ⭐⭐⭐⭐⭐"Honestly, I was afraid to send my paper to you, but splendidwritings.com proved they are a trustworthy service. My essay was done in less than a day, and I received a brilliant piece. I didn’t even believe it was my essay at first 🙂 Great job, thank you!"
.......... Customer ID: 14***| Rating: ⭐⭐⭐⭐⭐
"The company has some nice prices and good content. I ordered a term paper here and got a very good one. I'll keep ordering from this website."
