The most recent financial statements for Zoso, Inc., are shown here (assuming no
ID: 2683006 • Letter: T
Question
The most recent financial statements for Zoso, Inc., are shown here (assuming no income taxes):
Income Statement Balance Sheet
Sales $4,300 Assets $15,200 Debt $10,900
Costs 3,440 Equity 4,300
Net income
$860
Total
$15,200
Total
$15,200
Assets and costs are proportional to sales. Debt and equity are not. No dividends are paid. Next year's sales are projected to be $5,958.
Required:
What is the external financing needed? (Do not round your intermediate calculations.)
$4,419.24
$4,669.24
$4,794.24
$4,949.24
$4,539.24
Explanation / Answer
The most recent financial statements for Zoso, Inc., are shown here (assuming no income taxes):
Income Statement Balance Sheet
Sales $4,300 Assets $15,200 Debt $10,900
Costs 3,440 Equity 4,300
Net income
$860
Total
$15,200
Total
$15,200
Assets and costs are proportional to sales. Debt and equity are not. No dividends are paid. Next year's sales are projected to be $5,958.
Required:
What is the external financing needed? (Do not round your intermediate calculations.)
$4,419.24
$4,669.24
$4,794.24
$4,949.24
$4,539.24
EFN = Total assets – Total liabilities and equity