What is the external financing need

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The most recent financial statements for ABC Inc. are shown here:

Sales 10,000.00

CA 12,000.00

CL 2,400.00

Costs 8,000.00

Fixes A..x@21% 420.00

Total 25,000.00 25,000.00

NI 1,580.00

All the assets, costs, and CL are proportional to sales and the sales are projected to increase by 12 percent. Long-term debt and equity are not proportional to sales but the firm expects to borrow a net $1,000 as long-term debt during the year. The company follows a policy of a constant 40 percent dividend payout ratio. What is the external financing need?

Reference no: EM132502769

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