Assume that Delalo, Inc. is operating at full capacity. Also assume that assets, costs, and current liabilities vary directly wi

Question

3 years ago

11

th sales. The dividend payout ratio is constant. What is the external financing needed if sales increase by 10 percent?

2 answers:

Murrr4er [49] · Answer 1 · 2022-01-26T01:35:00+03:00

6 0

Answer:

Explanation:

External financing needed =

(1.10×$12,470) - (1.10× $1330)- $3200-$4600 - ($2,840+($45×1.10)=$616. 36.

The need for external financing is intermediate.

son4ous [18] · Answer 2 · 2022-01-26T04:02:50+03:00

Answer:

External Financing Needed (EFN) = $616.36

Explanation:

This question didn't give full information of the balance sheet.

The following are needed to find find the EFN:

- Sales

-Income

-Taxable Income

-Net Income

-Taxes

Nevertheless, here is the calculation:

External financing needed =

(1.10×$12,470) - (1.10× $1330)- $3200-$4600 - ($2,840+($45×1.10)=$616. 36