Determine the external financing needed

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Reference no: EM131011149

Consider the following simplified financial statements for the Fire Corporation (assuming no income taxes):

INCOME STATEMENT:

Sales $33886

Costs $25958

BALANCE SHEET:

Assets $57666 Debt $15444

Equity ?

The company has predicted a sales increase of 7 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.

Determine the external financing needed. (Negative amount should be indicated by a minus sign.)

Reference no: EM131011149

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