assets and costs are proportional to sales debt and equity are not adividend of 1 44 556281

EFN

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

Income Statement

Balance Sheet

Sales

$19,200

Assets

$93,000

Debt

$20,400

Costs

15,550

Equity

72,600

Taxable income

$ 3,650

Total

$93,000

Total

$93,000

Taxes (34%)

1,241

Net income

$ 2,409

Assets and costs are proportional to sales. Debt and equity are not. Adividend of $1,445.40 was paid, and Schism wishes to maintain a constant payout ratio. Next year’s sales are projected to be $24,000. What is the external financing needed?

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