What is the external financing needed

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

Income Statement Balance Sheet

Sales $3,500

Current assets $4,500

current liabilities 950.

cost 2000 Fixed Asset 6000 Long term debit 3,590

Equity 5,960

Taxable income 1500.

total 10,500 total 10,500

taxes (25%) 375

Net income $ 1,125.

Point 1: Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. The company maintains a constant 60 percent dividend payout ratio. As with every other firm in its industry, next year's sales are projected to increase by exactly 20 percent.

Question 1: What is the external financing needed?

Reference no: EM132493925

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