The most recent financial statements for Zoso, Inc., are shown here (assuming no
ID: 2703699 • Letter: T
Question
The most recent financial statements for Zoso, Inc., are shown here (assuming no income taxes):
$1,510
$15,400
$15,400
Assets and costs are proportional to sales. Debt and equity are not. No dividends are paid. Next year's sales are projected to be $5,972.
What is the external financing needed? (Do not round your intermediate calculations.)
rev: 09_17_2012
The most recent financial statements for Zoso, Inc., are shown here (assuming no income taxes):
The most recent financial statements for Zoso, Inc., are shown here (assuming no income taxes):Explanation / Answer
Asset Needed = 15400/4900 * 5972 = $18769.14
Additional Fund Needed = 18769.14- 15400 = $3369.14
Retained Earning Next year = 1510/4900*5972 = $1840.35
External Fund Needed = 3369.14-1840.35 = $1528.79 or $1529 approx