The most recent financial statements for Summer Tyme, Inc., are shown here:
Income StatementBalance Sheet Sales$3,800 Current assets$4,700 Current liabilities$820 Costs2,100
Fixed assets6,000 Long-term debt3,490 Taxable income$1,700 Equity6,390 Taxes (31%)527 Total$10,700
Total$10,700
Net income$1,173
Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. The company maintains a constant 40 percent dividend payout ratio. As with every other firm in its industry, next year’s sales are projected to increase by exactly 25 percent.
Required:What is the external financing needed? (Do not round your intermediate calculations.)
rev: 09_17_2012
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