18
The most recent financial statements for Cardinal Incorporated are shown here:
Income Statement
Balance Sheet
Sales
$23,000
Assets
$119,000
Debt
$32,600
Costs
16,400
Equity
86,400
Taxable
Income
7,600
Total
$119,000
Total
$119,000
Taxes (24%)
1,800
Net Income
$5,700
Assets and costs are proportional to sales. Debt and equity are not. A dividend of $1,480
was paid, and the company wishes to maintain a constant payout ratio. Next year's sales
are projected to be $28,800.
What is the external financing needed?
Multiple Choice
$17,692
$220,990
$86,925
$23,855
$20,158