Nu Tek has sales of $19,700, net income of $3,517, fixed assets of $18,282, curr

Question

Nu Tek has sales of $19,700, net income of $3,517, fixed assets of $18,282, current labilities of $2,940, current assets of $3,018, long-term debt of $7,600, and equity of $10,760. Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not The company maintalns a constant 50 percent dividend payout ratio. Next year's sales are projected to increase by 7 percent. What Is the amount of external financing needed the firm is currently operating at full capacity? Cholce -$596 -$141 $583 $912 -$482

Explanation / Answer

EFN =22791-23387=-596

Net Income 3517*1.07 3,763.19 Less Dividend 50% 1,881.60 Transferred to Retained earnning 1,881.60

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