Please type work and show each step. The most recent financial statements for Zo
ID: 2810468 • Letter: P
Question
Please type work and show each step.
The most recent financial statements for Zoso, Inc., are shown here (assuming no income taxes): Income Statement Balance Sheet Sales $4,700 Assets $15,100 Debt $10,600 Costs 3,390 Equity 4,500 Net income $1,310 Total $15,100 Total $15,100
Assets and costs are proportional to sales. Debt and equity are not. No dividends are paid. Next year's sales are projected to be $5,971.
Required: What is the external financing needed?
(Do not round your intermediate calculations.)
Multiple Choice $2,544 $2,419 $2,169 $2,699 $2,289
Explanation / Answer
Growth rate in sales=(5971-4700)/4700
=0.270425531
Total equity would be=$4500+Net income
=$4500+$1664.25745
=$6164.25745
Total assets would be=$15100*1.270425531
=$19183.42552
Total assets=Total equity+debt
Hence external financing needed=$19183.42552-$$6164.25745-$10600
which is equal to
=$2419(Approx).
Sales 5971 Costs(3390*1.270425531) $4306.74255 Net income $1664.25745