Question
In: Finance
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 $ 5,800 Current assets $ 2,500 Current liabilities $ 2,200 Costs 4,400 Fixed assets 8,100 Long-term debt 3,750 Taxable income $ 1,400 Equity 4,650 Taxes (34%) 476 Total $ 10,600 Total $ 10,600 Net income $ 924 Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. The company maintains a constant 30 percent dividend payout ratio. As with every other firm in its industry, next year’s sales are projected to increase by exactly 10 percent. What is the external financing needed? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Solutions
jeff jeffy answered 2 years agoRelated Solutions
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...
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
$
5,800
Current assets
$
2,500
Current liabilities
$
2,200
Costs
4,400
Fixed assets
8,100
Long-term debt
3,750
Taxable income
$
1,400
Equity
4,650
Taxes (34%)
476
Total
$
10,600
Total
$
10,600
Net
income
$
924
Assets, costs, and current liabilities are proportional to
sales. Long-term debt and equity are not. The company maintains a
constant 30 percent dividend payout ratio. As with...
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...
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
$
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...
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...
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 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...
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