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The most recent financial statements for Xporter, Inc., are shown here: Income S

ID: 2635851 • Letter: T

Question

The most recent financial statements for Xporter, Inc., are shown here: Income Statement Balance Sheet Sales $ 6,900 Current assets $ 3,600 Current liabilities $ 2,200 Costs 5,400 Fixed assets 10,200 Long-term debt 3,750 Taxable income $ 1,500 Equity 7,850 Taxes (34%) 510 Total $ 13,800 Total $ 13,800 Net income $ 990 Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. The company maintains a constant 40 percent dividend payout ratio. As with every other firm in its industry, next year

Explanation / Answer

Profit & Loss Projected

New Debts 5722

Debts Earlier 3750

Financing Required 1972

Sales 8073 Cost 6318 Taxable Income 1755 Taxes 596.70 Net Income 1158.30