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The most recent financial statements for Reply, Inc., are shown here: Assets and costs ar

The most recent financial statements for Reply, Inc., are shown here: Assets and costs ar

The most recent financial statements for Reply, Inc., are shown here:

Assets and costs are proportional to sales. Debt and equity are not. A dividend of $1,800 was paid, and the company wishes to maintain a constant payout ratio. Next year’s sales are projected to be $30,475.

What is the external financing needed? (Do not round intermediate calculations.)

Income Statement

 

Balance Sheet

 

  Sales

$

26,500

 

  Assets

$

60,100

 

  Debt

$

27,500

 

  Costs

 

18,200

 

 

 

 

 

  Equity

 

32,600

 

 

 

 

 

 

 

 

 

 

 

 

 

  Taxable income

$

8,300

 

    Total

$

60,100

 

    Total

$

60,100

 

 

 

 

 

 

 

 

 

 

 

 

 

  Taxes (40%)

 

3,320

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    Net income

$

4,980

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Abhinav 02-Dec-2019

Answer (UnSolved)

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