I can\'t seem to figure out what the equity/toal is to get the EFN. Consider the

Question

I can't seem to figure out what the equity/toal is to get the EFN.

Consider the following simplified financial statements for the Fire Corporation (assuming no income taxes): The company has predicted a sales increase of 20 percent. Assume Fire pays out half of net income in the form of a cash dividend. Costs and assets vary with sales, but debt and equity do not. Prepare the pro forma statements. (Round your answers to the nearest whole dollar amount.) Determine the external financing needed. (Negative amount should be indicated by a minus sign.) External financing needed

Explanation / Answer

New equty = 16500 +7908 -7908/2 =$20454

EFN = 27900-6750-20454 =$696

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