In: Accounting
The most recent financial statements for Martin, Inc., are shown here:
Income Statement | |
Sales | 26,000 |
Costs | -15,600 |
Taxable income | 10,400 |
Taxes(34%) | -3,536 |
Net income | 6,864 |
Balance Sheet | |||
Assets | $98,800.00 | Debt | $45,000.00 |
Equity | 53,800 | ||
Total | $ 98,800.00 | Total | $98,800.00 |
Assets and costs are proportional to sales. Debt and equity are not. A dividend of $1,075 was paid, and Martin wishes to maintain a constant payout ratio. Next year’s sales are projected to be $31,200. What is the external financing needed? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
EFN: