Problem 17-6 Calculating EFN (LO4, CFA9) The most recent financial statements fo

Question

Problem 17-6 Calculating EFN (LO4, CFA9) The most recent financial statements for Bradley, Inc., are shown here (assuming no income taxes): Income Statement $ 6,400 (4,480) 1,920 Sales Costs Net income Balance Sheet 19,200 Debt $ 9,900 Equity 9 300 $19,200 Assets Total 19,200 Total Assets and costs are proportional to sales. Debt and equity are not. No dividends are paid. Next year's sales are projected to be $7,808. What is the external financing needed? (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to the nearest whole number.) EFN

Explanation / Answer

Projected P&L

Projected B&S

Particulars Year 0 Year 1 Sales 6400 7808 Cost 4480 5465.6 As % of sales 70% 70% Net income 1920 2342.4

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