follow. Sales for 2021 are projected to grow by 30 percent.
Interest expense will remain constant; the tax rate and the
dividend payout rate will also remain constant. Costs, other
expenses, current assets, fixed assets, and accounts payable
increase spontaneously with sales.
- The Most Recent Financial Statements For Retro Machine Inc Follow Sales For 2021 Are Projected To Grow By 30 Percent 1 (71.03 KiB) Viewed 25 times
equity is issued, what is the external financing needed to support
the 30 percent growth rate in sales? (Do not round
intermediate calculations.)
What Is the EFN?
RETRO MACHINE, INC. 2020 Income Statement Sales Costs Other expenses $758,000 593,000 29,000 $ 136.000 Earnings before interest and taxes Interest paid 25,000 Taxable income Taxes (25%) $ 111,000 27,750 Net income $ 83,250 $24,975 Dividends Addition to retained earnings 58,275
RETRO MACHINE, INC. Balance Sheet as of December 31, 2020 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $ 21,740 Accounts payable $ 55,900 Accounts receivable 44,680 Notes payable 15,100 Inventory 102,960 Total $ 71,000 Total $ 169,380 Long-term debt $ 141,000 Fixed assets Net plant and equipment $434.000 Owners' equity Common stock and paid-in surplus Retained earnings $ 120,000 271,380 Total $ 391,380 Total assets $603,380 Total liabilities and owners' equity $603,380