10.00 points Here are the abbreviated financial statements for Planners Peanuts:

Question

10.00 points Here are the abbreviated financial statements for Planners Peanuts: Sales Cost INCOME STATEMENT, 2012 $ 8,000 6,300 Net income $1,700 BALANCE SHEET, YEAR-END Assets $4,500 5,000 Deb$ 853 1,000 Total $4,500 5,000 ot4,500 5,000 2011 2012 2011 2012 Equity 3,647 4,000 If the dividend payout ratio is fixed at 50%, calculate the required total external financing for growth rates in 2013 of 25%, 30%, and 35%. (Do not round intermediate calculations. Round your answers to 2 decimal places.) External Financing 25% 30% 35%

Explanation / Answer

25% 30% 35% Growth in Assets $,250 $ 1,500 $1,750 Less: Retained Earnings $1,063 $ 1,105 $1,148 External Financing $188 $395 $ 603 Growth In Assets = $5000* ( 1 + growth rate) Net Income = $1,700 * ( 1+ growth rate) Retained Earnings = Net Income x 0.50

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