Reference no: EM132218202

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

Income Statement Balance Sheet   Sales$41,000   Assets$152,000   Debt$45,500   Costs 27,700       Equity 106,500         Taxable income$13,300   Total$152,000   Total$152,000           Taxes (22%) 2,926                     Net income$10,374

Assets and costs are proportional to sales; debt and equity are not. A dividend of $3,650 was paid, and the company wishes to maintain a constant payout ratio. Next year's sales are projected to be $47,150.

What is the external financing needed? (Do not round intermediate calculations.)

If Muenster, Inc., has an equity multiplier of 1.47, total asset turnover of 1.6, and a profit margin of 5.7 percent, what is its ROE? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

During the year, the Senbet Discount Tire Company had gross sales of $1.26 million. The company's cost of goods sold and selling expenses were $595,000 and $248,000, respectively. The company also had notes payable of $870,000. These notes carried an interest rate of 7 percent. Depreciation was $125,000. The tax rate was 25 percent.

a. What was the company's net income? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars, rounded to the nearest whole dollar amount, e.g., 1,234,567.)

b. What was the company's operating cash flow? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars, rounded to the nearest whole dollar amount, e.g., 1,234,567.)