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 3 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
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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
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Sales
$23,852
Costs
$11,902
Taxable Income
?
Taxes (40%)
?
Net Income
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Balance Sheet
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Debt
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Equity
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The most recent financial statements for GPS, Inc., are shown
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Income Statement
Sales
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Costs
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Taxable Income
?
Taxes (40%)
?
Net Income
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Balance Sheet
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Debt
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The most recent financial statements for GPS, Inc., are shown
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Income Statement
Sales
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Costs
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Taxable Income
?
Taxes (40%)
?
Net Income
?
Balance Sheet
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Debt
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Equity
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Assets and costs are proportional to sales. Debt and equity are
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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
$59,616
Debt
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Equity
?
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What is the external financing needed?
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The most recent financial statements for Heine, Inc., are shown
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Assets and costs are proportional to sales. Debt and equity are
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The most recent financial statements for Assouad, Inc., are shown here: Income Statement Balance Sheet Sales...
The most recent financial statements for Assouad, Inc., are
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Income Statement
Balance Sheet
Sales
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Current assets
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3,450
Current liabilities
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Costs
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Fixed assets
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Long-term debt
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Taxable income
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Equity
6,115
Taxes (22%)
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$
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$
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