Determine what is the external financing needed

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Reference no: EM13327308

The CEO of Easy Home Sales Inc. would like to grow the company to $952,000 in sales for next year. The finance officer has compiled the data below for the current year. Assets and costs will grow propotionate to sales; debt and equity will not. The dividend pay out ratio will be the same as current year. what is the external financing needed?

current year data

sales $800,000

costs 600,000

tax rate 35%

assets 2,000,000

debt 800,000

equity 1,200,000

dividends 26,000

Reference no: EM13327308

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