The most recent financial statements for Zoso, Inc., are shown here (assuming no

Question

The most recent financial statements for Zoso, Inc., are shown here (assuming no income taxes):

$1,510  

$15,400  

$15,400  

Assets and costs are proportional to sales. Debt and equity are not. No dividends are paid. Next year's sales are projected to be $5,972.

What is the external financing needed? (Do not round your intermediate calculations.)

rev: 09_17_2012

The most recent financial statements for Zoso, Inc., are shown here (assuming no income taxes):

Explanation / Answer

Asset Needed = 15400/4900 * 5972 = $18769.14

Additional Fund Needed = 18769.14- 15400 = $3369.14

Retained Earning Next year = 1510/4900*5972 = $1840.35

External Fund Needed = 3369.14-1840.35 = $1528.79 or $1529 approx

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