The most recent financial statements for GPS, Inc., are shown here:
Income Statement Balance Sheet Sales $23,800 Assets $113,000 Debt $42,600 Costs 16,400
Equity 70,400 Taxable income $7,400 Total $113,000
Total $113,000
Taxes (40%) 2,960 Net income $4,440
Assets and costs are proportional to sales. Debt and equity are not. A dividend of $1,660 was paid, and the company wishes to maintain a constant payout ratio. Next year's sales are projected to be $28,500.
Required:
What is the external financing needed? You'll need to start by calculating the percentage growth rate in sales, as well as the dividend payout ratio (or plowback ratio).
$177,018
$18,986
$15,496
$14,333
$13,170
| The most recent financial statements for GPS, Inc., are shown here: |
| Income Statement | Balance Sheet | ||||
| Sales | $23,800 | Assets | $113,000 | Debt | $42,600 |
| Costs | 16,400 | Equity | 70,400 | ||
| Taxable income | $7,400 | Total | $113,000 | Total | $113,000 |
| Taxes (40%) | 2,960 | ||||
| Net income | $4,440 | ||||
| Assets and costs are proportional to sales. Debt and equity are not. A dividend of $1,660 was paid, and the company wishes to maintain a constant payout ratio. Next year's sales are projected to be $28,500. |
| Required: |
| What is the external financing needed? You'll need to start by calculating the percentage growth rate in sales, as well as the dividend payout ratio (or plowback ratio). |
$177,018
$18,986
$15,496
$14,333
$13,170
Related questions
| The most recent financial statements for GPS, Inc., are shown here: |
| Income Statement | Balance Sheet | ||||||||||
| Sales | $ | 28,400 | Assets | $ | 59,300 | Debt | $ | 25,500 | |||
| Costs | 19,500 | Equity | 33,800 | ||||||||
| Taxable income | $ | 8,900 | Total | $ | 59,300 | Total | $ | 59,300 | |||
| Taxes (40%) | 3,560 | ||||||||||
| Net income | $ | 5,340 | |||||||||
| Assets and costs are proportional to sales. Debt and equity are not. A dividend of $2,400 was paid, and the company wishes to maintain a constant payout ratio. Next year |
Consider the following recent financials for XYZCorporation:
Income Statement | Balance Sheet | ||||
Sales | 73,802 | Assets | 209,087 | Debt | 38,278 |
Costs | 44,281 | Equity | 170,809 | ||
EBIT | 29,521 | ||||
Taxes @ 38% | 11,218 | Total | 209,087 | Total | 209,087 |
Net Income | 18,303 | ||||
Assets and costs are proportional to sales. Debt and equity arenot. A dividend of $2,907 was paid, and the company wishes tomaintain a constant payout ratio. Next yearΓ’ΒΒs sales are projectedto grow by 25%.
What is the pro-forma value for equity? (Round answer to 2decimal places. Do not round intermediate calculations).
What is the external financing needed using the pro-formaapproach? (Round answer to 2 decimal places. Do not roundintermediate calculations).
