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Income Statement Balance Sheet Balance Sheet Sales $19,500 Assets $98,000 Debt $52,500 Costs $15,000 Equity $45,500 Taxable income $4,500 Taxes (40%)...

Assets and costs are proportional to sales. Debt and equity are not. A dividend of $1,400 was paid, and the company wishes to maintain a constant payout ratio. Next year's sales are projected at $21,840. What is the external financing needed?
Income Statement Balance Sheet Balance Sheet Sales $19,500 Assets $98,000 Debt $52,500 Costs $15,000 Equity $45,500 Taxable income $4,500 Taxes (40%) $1,800 Net income $2,700 Total $98,000 Total $98,000 Assets and costs are proportional to sales. Debt and equity are not. A dividend of $1,400 was paid, and the company wishes to maintain a constant payout ratio. Next year's sales are projected at $21,840. What is the external financing needed?
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Finance-7600402.xls

Calculating EFN
Income Statement
Sales
$19,500
Costs
15,000
Taxable income
$4,500
Taxes (40%)
1,800
Net income
$2,700
Balance Sheet
Assets
Debt
Equity
Total $98,000 $98,000 $52,500
45,500
$98,000...

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