Revenues $4,200 Current assets $4,500 Current liabilities $970 ...
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Accounting
Revenues
$4,200
Current assets
$4,500
Current liabilities
$970
Costs
2,800
Fixed assets
5,300
Long-term debt
3,500
Taxable income
$1,400
Equity
5,330
Taxes (23%)
322
Total
$9,800
Total
$9,800
Net income
$1,078
Assets, costs, and current liabilities vary directly with revenues. Long-term debt and equity do not. The firm maintains a constant 40 percent dividend payout rate. Revenues for the next year are projected to increase by 25 percent.
What is the external financing needed for the next year?
Multiple Choice
$1,399.00
$1,349.00
$875.00
$1,641.50
$1,449.00
Answer & Explanation
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