Question
In: Finance
The most recent financial statements for GPS, Inc., are shown here: Income Statement Balance Sheet Sales...
|
The most recent financial statements for GPS, Inc., are shown here: |
| Income Statement | Balance Sheet | ||||
| Sales | $22,900 | Assets | $113,000 | Debt | $31,600 |
| Costs |
16,600 |
Equity | 81,400 | ||
| Taxable income | $6,300 | Total |
$113,000 |
Total |
$113,000 |
| Taxes (30%) | 1,890 | ||||
| Net income |
$4,410 |
||||
|
Assets and costs are proportional to sales. Debt and equity are not. A dividend of $1,500 was paid, and the company wishes to maintain a constant payout ratio. Next year's sales are projected to be $29,200. |
| Required: |
|
What is the external financing needed? |
Multiple Choice
-
$216,281
-
$22,708
-
$27,377
-
$21,541
-
$23,876
Solutions
Expert Solution
Calculation of Net Income when sale is $ 29200
| Income Statement | ||
| Particular | Working | Amount |
| Sales | 29200.00 | |
| Cost | (16600/22900)*29200 | 21166.81 |
| Taxable Income | 8033.19 | |
| Tax @ 30% | 2410 | |
| Net Income | 5623.19 |
Dividend= (1500/4410)*5623.19 = $ 1912.65
Retained Earnings= Net Income - Dividend
= 5623.19-1912.65
= $ 3710.54
| BALANCE SHEET | |||
| Assets | Amount | Liabilities & Equity | Amount |
| Assets (113000/22900)*29200 | 144087.34 | Debt | 31600.00 |
| Equity (81400+3710.54) | 85110.54 | ||
| External Financing (Balance Figure) | 27376.80 | ||
| Total | 144087.34 | Total | 144087.34 |
Therefore external financing required is $ 27,377
jeff jeffy answered 2 years agoRelated Solutions
The most recent financial statements for GPS, Inc., are shown here: Income Statement Balance Sheet Sales...
The most recent financial statements for GPS, Inc., are shown
here:
Income Statement
Balance Sheet
Sales
$23,800
Assets
$121,000
Debt
$43,600
Costs
16,900
Equity
77,400
Taxable income
$6,900
Total
$121,000
Total
$121,000
Taxes (30%)
2,070
Net income
$4,830
Assets and costs are proportional to sales. Debt and equity are
not. A dividend of $1,470 was paid, and the company wishes to
maintain a constant payout ratio. Next year's sales are projected
to be $29,400.
Required:
What is the external financing...
The most recent financial statements for GPS, Inc., are shown here: Income Statement Balance Sheet Sales...
The most recent financial statements for GPS, Inc., are shown
here:
Income Statement
Balance Sheet
Sales
$22,300
Assets
$105,000
Debt
$33,600
Costs
16,000
Equity
71,400
Taxable income
$6,300
Total
$105,000
Total
$105,000
Taxes (30%)
1,890
Net
income
$4,410
Assets and costs are proportional to sales. Debt and equity are
not. A dividend of $1,610 was paid, and the company wishes to
maintain a constant payout ratio. Next year's sales are projected
to be $28,900.
Required:
What is the external financing...
The most recent financial statements for GPS, Inc., are shown here: Income Statement Sales $23,852 Costs...
The most recent financial statements for GPS, Inc., are shown
here:
Income Statement
Sales
$23,852
Costs
$11,902
Taxable Income
?
Taxes (40%)
?
Net Income
?
Balance Sheet
Assets
$56,455
Debt
$18,576
Equity
?
Assets and costs are proportional to sales. Debt and equity are
not. A dividend of $1,980 was paid, and the company wishes to
maintain a constant payout ratio. Next year’s sales are projected
to be $29,412.
What is the external financing needed? (Negative amount
should be...
The most recent financial statements for GPS, Inc., are shown here: Income Statement Sales $23,120 Costs...
The most recent financial statements for GPS, Inc., are shown
here:
Income Statement
Sales
$23,120
Costs
$11,132
Taxable Income
?
Taxes (40%)
?
Net Income
?
Balance Sheet
Assets
$56,917
Debt
$21,193
Equity
?
Assets and costs are proportional to sales. Debt and equity are
not. A dividend of $1,748 was paid, and the company wishes to
maintain a constant payout ratio. Next year’s sales are projected
to be $27,881.
What is the external financing needed? (Negative amount
should be...
The most recent financial statements for GPS, Inc., are shown here: Income Statement Sales $21706 Costs...
The most recent financial statements for GPS, Inc., are shown
here:
Income Statement
Sales
$21706
Costs
$14096
Taxable Income
?
Taxes (40%)
?
Net Income
?
Balance Sheet
Assets
$55199
Debt
$22015
Equity
?
Assets and costs are proportional to sales. Debt and equity are
not. A dividend of $1887 was paid, and the company wishes to
maintain a constant payout ratio. Next year’s sales are projected
to be $29409.
What is the external financing needed? (round 2 decimal
places)
The most recent financial statements for GPS, Inc., are shown here: Income Statement Sales $22,640 Costs...
The most recent financial statements for GPS, Inc., are shown
here:
Income Statement
Sales
$22,640
Costs
$10,389
Taxable Income
?
Taxes (40%)
?
Net Income
?
Balance Sheet
Assets
$59,616
Debt
$15,043
Equity
?
Assets and costs are proportional to sales. Debt and equity are
not. A dividend of $1,649 was paid, and the company wishes to
maintain a constant payout ratio. Next year’s sales are projected
to be $26,534.
What is the external financing needed?
The most recent financial statements for Heine, Inc., are shown here: Income Statement Balance Sheet Sales...
The most recent financial statements for Heine, Inc., are shown
here: Income Statement Balance Sheet Sales $ 23,500 Assets $ 53,400
Debt $ 20,200 Costs 14,900 Equity 33,200 Taxable income $ 8,600
Total $ 53,400 Total $ 53,400 Taxes (40%) 3,440 Net income $ 5,160
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...
The most recent financial statements for Assouad, Inc., are shown here: Income Statement Balance Sheet Sales...
The most recent financial statements for Assouad, Inc., are
shown here:
Income Statement
Balance Sheet
Sales
$
8,500
Current assets
$
3,450
Current liabilities
$
2,325
Costs
5,950
Fixed assets
8,900
Long-term debt
3,910
Taxable income
$
2,550
Equity
6,115
Taxes (22%)
561
Total
$
12,350
Total
$
12,350
Net
income
$
1,989
Assets, costs, and current liabilities are proportional to
sales. Long-term debt and equity are not. The company maintains a
constant 45 percent dividend payout ratio. As with...
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 $ 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...
The most recent financial statements for Cornwall, Inc., are shown here: Income Statement Balance Sheet Sales...
The most recent financial statements for Cornwall, Inc., are
shown here: Income Statement Balance Sheet Sales $ 7,400 Current
assets $ 4,100 Current liabilities $ 2,200 Costs 6,000 Fixed assets
9,800 Long-term debt 3,750 Taxable income $ 1,400 Equity 7,950
Taxes (34%) 476 Total $ 13,900 Total $ 13,900 Net income $ 924
Assets, costs, and current liabilities are proportional to sales.
Long-term debt and equity are not. The company maintains a constant
20 percent dividend payout ratio. As with...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Cryptography is used heavily in internet communications. True or false? Explain
- Suppose Rialto is the only movie cinema in a small college town, so it is essentially...
- With VMI, members of the supply chain share planning, demand, forecasting, and inventory information.
- Large lots are desirable in supply chain coordination despite increasing holding costs.
- ***Convert the C++ to Python*** #include <iostream> using std::cout; using std::cin; using std::endl; int charClass; char...
- Make-or-Buy Decision Fremont Computer Company has been purchasing carrying cases for its portable computers at a...
- The following costs were incurred for the single product produced during the first year of operations...
ADVERTISEMENT