14 Question value 10.00 points eat The most recent financial statements for Xpor

Question

14 Question value 10.00 points eat The most recent financial statements for Xporter, Inc. are shown here nce $ 6,100 Current assets $2,800 Current liabilities S 2,200 5,000 Fixed assets9.200 Long-term debt 3,750 6,050 $12,000 Sales Costs Taxable income Taxes t34%) $ 1.100 Equity 374 Total $12.000 Total Net income 726 Assets, costs, and current liabilities are proportional to sales Long-term debt and equity are not The company maintains a constant 30 percent dividend payout ratio. As with every other firm in its industry, next year's sales are projected to increase by exactly 10 percent What is the external financing needed? (Round your answer to 2 decimal places. (e.g., 32.16)) ternal financing needed $ Hints References eBook & Resources Hint #1 work

Explanation / Answer

Total assets would be=(12000*1.1)=$13200

Total current liabilities=(2200*1.1)=2420

Total liabilities=(2420+3750)=$6170

Total equity=(6050+559.02)=$6609.02

Total assets=Total liabilities+Total equity

Hence external financing needed=(13200-6170-6609.02)

=$420.98

Sales(6100*1.1) 6710 Costs(5000*1.1) 5500 Taxable income 1210 Less:taxes(34%) 411.4 Net income $798.60 Less:dividends payments(30%) $239.58 Addition to retained earnings $559.02

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