Question
In: Finance
The most recent financial statements for Summer Tyme, Inc., are shown here: Income Statement Balance Sheet...
|
The most recent financial statements for Summer Tyme, Inc., are shown here: |
| Income Statement | Balance Sheet | ||||
| Sales | $4,400 | Current assets | $5,100 | Current liabilities | $810 |
| Costs |
2,000 |
Fixed assets | 5,400 | Long-term debt | 3,500 |
| Taxable income | $2,400 | Equity | 6,190 | ||
| Taxes (33%) | 792 | Total |
$10,500 |
Total |
$10,500 |
| Net income |
$1,608 |
||||
|
Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. The company maintains a constant 60 percent dividend payout ratio. As with every other firm in its industry, next year's sales are projected to increase by exactly 20 percent. |
| Required: |
|
What is the external financing needed? (Do not round your intermediate calculations.) |
Solutions
jeff jeffy answered 4 months agoRelated Solutions
The most recent financial statements for Summer Tyme, Inc., are shown here: Income Statement Balance Sheet...
The most recent financial statements for Summer Tyme, Inc., are
shown here:
Income Statement
Balance Sheet
Sales
$3,600
Current assets
$5,200
Current liabilities
$790
Costs
2,700
Fixed assets
4,700
Long-term debt
3,640
Taxable income
$900
Equity
5,470
Taxes (31%)
279
Total
$9,900
Total
$9,900
Net income
$621
Assets, costs, and current liabilities are proportional to
sales. Long-term debt and equity are not. The company maintains a
constant 50 percent dividend payout ratio. As with every other firm
in its industry,...
The most recent financial statements for Summer Tyme, Inc., are shown here: Income Statement Balance Sheet...
The most recent financial statements for Summer Tyme, Inc., are
shown here:
Income Statement
Balance Sheet
Sales
$3,800
Current assets
$5,200
Current liabilities
$790
Costs
2,400
Fixed assets
5,700
Long-term debt
3,510
Taxable income
$1,400
Equity
6,600
Taxes (35%)
490
Total
$10,900
Total
$10,900
Net income
$910
Assets, costs, and current liabilities are proportional to
sales. Long-term debt and equity are not. The company maintains a
constant 60 percent dividend payout ratio. As with every other firm
in its industry,...
The most recent financial statements for ABC, Inc. are shown here: Income Statement Balance Sheet...
The most recent financial statements for ABC, Inc. are shown
here:
Income Statement
Balance Sheet
Sales
4,800
Current assets
6,084
Current Liabilities
1,244
Costs
3,840
Fixed assets
5,183
Long-term debt
2,487
Taxable income
960
Equity
7,036
Taxes (35%)
336
Retained earnings
500
Net income
624
Total
11,267
Total
11,267
The company is running at full capacity and the company
maintains a constant 50 percent dividend payout ratio. Like every
other firm in its industry, 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
$
40,200
Assets
$
148,000
Debt
$
43,500
Costs
27,300
Equity
104,500
Taxable income
$
12,900
Total
$
148,000
Total
$
148,000
Taxes (23%)
2,967
Net income
$
9,933
Assets and costs are proportional to sales; debt and equity are
not. A dividend of $3,450 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
$
39,600
Assets
$
145,000
Debt
$
42,000
Costs
27,000
Equity
103,000
Taxable income
$
12,600
Total
$
145,000
Total
$
145,000
Taxes (25%)
3,150
Net income
$
9,450
Assets and costs are proportional to sales; debt and equity are
not. A dividend of $3,300 was paid, and the company wishes to
maintain a constant payout ratio. Next year’s sales are projected...
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
$22,900
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...
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...
1. The most recent financial statements for Cornwall, Inc., are shown here: Income Statement Balance Sheet...
1.
The most recent financial statements for Cornwall, Inc., are
shown here:
Income Statement
Balance Sheet
Sales
$
6,000
Current assets
$
2,700
Current liabilities
$
2,200
Costs
4,950
Fixed assets
9,100
Long-term debt
3,750
Taxable income
$
1,050
Equity
5,850
Taxes (34%)
357
Total
$
11,800
Total
$
11,800
Net
income
$
693
Assets, costs, and current liabilities are proportional to
sales. Long-term debt and equity are not. The company maintains a
constant 40 percent dividend payout ratio. As...
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...
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