Here are the abbreviated financial statements for Planners Peanuts: INCOME STATEMENT, 2022 Sales...
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Accounting
Here are the abbreviated financial statements for Planners Peanuts:
INCOME STATEMENT, 2022
Sales
$ 9,000
Cost
7,100
Net income
$ 1,900
BALANCE SHEET, YEAR-END
2021
2022
2021
2022
Assets
$ 6,500
$ 7,000
Debt
$ 853
$ 1,000
Equity
5,647
6,000
Total
$6,500
$ 7,000
Total
$ 6,500
$ 7,000
Assets are proportional to sales. If the dividend payout ratio is fixed at 50%, calculate the required total external financing for growth rates in 2023 of (a) 25%, (b) 30%, and (c) 35%.
Note: Do not round intermediate calculations. Round your answers to 2 decimal places.
External Financing Needed
(a)
25%
(b)
30%
[c]
35%
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