please show all work The most recent financial statements for Zoso, Inc., are sh

Question

please show all work 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

Increase in % of sales = (5971-4700)/4700 = 27.0426%

.

Projected net income:

Sales - Cost = Net Income

5971 - 3390 x (1+27.0426%) = 1664.25586

Revised:

Equity = Previous balance + Projected Net Income = 4500 + 1664.25586 = 6164.25586

Total debt = 10600

Total Assets Revised = 15100 x (1+ 27.0426%) = 15100 x (1+ 27.0426%) = $19183.4326

EFN = Total Assets Revised - Revised Equity - Debt

EFN = 19183.4326 - 6164.25586 - 10600

EFN = $2419

Correct option is > $2419

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