EFN
The most recent financial statements for Schism, Inc., are shown here:
|
Income Statement |
Balance Sheet |
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|
Sales |
$19,200 |
Assets |
$93,000 |
Debt |
$20,400 |
|
Costs |
15,550 |
Equity |
72,600 |
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|
Taxable income |
$ 3,650 |
Total |
$93,000 |
Total |
$93,000 |
|
Taxes (34%) |
1,241 |
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|
Net income |
$ 2,409 |
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Assets and costs are proportional to sales. Debt and equity are not. Adividend of $1,445.40 was paid, and Schism wishes to maintain a constant payout ratio. Next year’s sales are projected to be $24,000. What is the external financing needed?