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Chapter 18 0 Swan Help Save: Exit Submit w The 201?r nancial statements for Growth Industrles are presented below. INCOME STEM, 20].? 133 Sales S

Screen Shot 2018-05-10 at 5.10.12 PM.pngWhat is the required external financing over the next year?

Screen Shot 2018-05-10 at 5.10.12 PM.png

Chapter 18 0 Swan Help Save: Exit Submit w The 201?r financial statements for Growth Industrles are presented below. INCOME STEM, 20].? 133 Sales S 210,000
polnts Costs 135.000
re IT s 35 , 0 no
Intere st expense 1‘? . 0 00
5km,“ Taxable income S 63 , U 00
Taxes (at 35%] 23,900
Net income S 411,200
eBook Dividends S 1‘? , 6 90
Addition to retained earnings 26 , 520
Prlnt
References matron SHEET, nan—m, 2011'
Assets Liabilities
Current assets Current liabilities
Cash S 3 , Cl 00 Accounts payable S 10 , Cl 00
Accounts receivable B , U 00 Total current liabilities S 10 , U 00
Inventories 29, 000 Long-term debt 1'30, 000
Total current as sets S 40 , U 00 Stockholders " equityr
Net plant and equipment 2 10 , Cl 00 Common stock plus additional paid-in capital 15 , Cl 00
Retained earnings 55 , U 00
Total assets S 250 c U 00 Total liabilities and stockholders ‘ equity 5: 250 . U 00 Sales and costs are projected to grow at 30% a year for at least the next 4 years. Both current assets and accounts payable are
proJected to rise ln proportion to sales. The firm is currently operating at T596 capacity, so it plans to increase fixed assets in proportion
to sales. Interest expense will equal 10% of long-term debt outstandlng at the start of the year. The firm wlll malntaln a dividend payout ratlo of 0.40. What is the required external financing over the next year? {Negative amounts should be Indicated by a minus slgn.)

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