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Question: The most recent financial statements for Heine,

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

Assets and costs are proportional to sales. Debt and equity are not. A dividend of $3,500 was paid, and the company wishes to maintain a constant payout ratio. Next year’s sales are projected to be $45,426. What external financing is needed?

Assets and costs are proportional to sales. Debt and equity are not. A dividend of $3,500 was paid, and the company wishes to maintain a constant payout ratio. Next year’s sales are projected to be $45,426. What external financing is needed?





Transcribed Image Text:

Income Statement Balance Sheet Sales $40,200 Assets $145,000 Debt $ 39,000 Costs 27,300 Equity 106,000 Taxable income $ 12,900 Total $145,000 Total $145,000 Taxes (34%) 4,386 Net income $ 8,514



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2.99

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