next year rsquo s sales are projected to be 5 320 what is the external financing nee 556280

Calculating EFN

The most recent financial statements for Bradley’s Bagels, Inc., are shown here (assuming no income taxes):

Income Statement

Balance Sheet

Sales

$3,800

Assets

$13,300

Debt

$ 9,200

Costs

1,710

Equity

4,100

Net income

$2,090

Total

$13,300

Total

$13,300

Assets and costs are proportional to sales. Debt and equity are not. No dividends are paid. Next year’s sales are projected to be $5,320. What is the external financing needed?

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