The most recent financial statements for GPS, Inc., are shown here: ...
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Accounting
The most recent financial statements for GPS, Inc., are shown here:
Income Statement
Balance Sheet
Sales
$22,600
Assets
$112,000
Debt
$39,600
Costs
16,400
Equity
72,400
Taxable income
$6,200
Total
$112,000
Total
$112,000
Taxes (35%)
2,170
Net income
$4,030
Assets and costs are proportional to sales. Debt and equity are not. A dividend of $1,570 was paid, and the company wishes to maintain a constant payout ratio. Next year's sales are projected to be $29,200.
Required:
What is the external financing needed?
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