Problem 4-4 EFN [LO2]
The most recent financial statements for Cardinal, Inc., are
shown here:
Income Statement
Balance Sheet
  Sales
$
31,000
  Assets
$
73,200
  Debt
$
36,700
  Costs
18,400
  Equity
36,500
  Taxable...
80.2K
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Finance
Problem 4-4 EFN [LO2]
The most recent financial statements for Cardinal, Inc., areshown here:
Income Statement
Balance Sheet
  Sales
$
31,000
  Assets
$
73,200
  Debt
$
36,700
  Costs
18,400
  Equity
36,500
  Taxable income
$
12,600
    Total
$
73,200
    Total
$
73,200
  Taxes (22%)
2,772
    Net income
$
9,828
Assets and costs are proportional to sales. Debt and equity arenot. A dividend of $3,700 was paid, and the company wishes tomaintain a constant payout ratio. Next year’s sales are projectedto be $35,340.
What is the external financing needed? (Do not roundintermediate calculations.)
Answer & Explanation
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3.8 Ratings (364 Votes)
Next years projected sales 35340 Current year sales 31000 of increase in sales next year Next year sales Current year sales Current year sales of increase in sales next year 35340 31000 31000 of increase in sales next year 014 or 14 Projected income statement for next year Sales
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