Question

The most recent financial statements for Xporter, Inc., are shown here:

Income Statement
Sales	$7098
Costs	$5920
Taxable Income	?
Taxes (34%)	?
Net Income	?

Balance Sheet
Current Asset	$3800	Current Liabilities	$2107
Fixed Asset	$9822	Long Term Debt	$3955
		Equity	?

Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. The company maintains a constant 22 percent dividend payout ratio. As with every other firm in its industry, next year’s sales are projected to increase by exactly 10 percent.

What is the external financing needed? (Negative amount should be indicated by a minus sign.)

(Omit the "$" sign and commas in your response. Enter your answer rounded to 2 decimal places. For example, $1,200.456 should be entered as 1200.46.)

Answer 1