Kizspy | Question: 17
(Choose 1 answer)
The table below is financial statement of SafeNet Company Assume that SafeNet company is operating at full capacity. Also assume that assets, costs, and current liabilities vary directly with sales. The dividend payout ratio is constant. What is the external financing needed if sales increase by 10 percent?
A. $59.00
B. $62.40
C. $70.50
D. $78.10
SafeNet Company 2016 Income Statement
$ 12,500.0
$ 8,100.0
$ 1.700.0
$ 2,700.0
$ 864.0
$ 1,836.0
$ 406.0
$ 1,430.0
SafeNet Company
2016 Balance Sheet
990.0 Accounts payable
840.0 Long-term debt.
Sales
COGS
Depreciaton
EBIT
Interest paid Taxable Income
Taxes
Net Income
Dividends
620.0 Common stock $ 2,450.0 Retained earnings
$ 10,020.0
$ 12,470.0 Total liabilities & equity $ 12,470.0
S
953.44
$ 474.0
$ 956.0
Addition to retained earnings
15625 Cash
Accounts recievable
Inventory
Total
Net fixed assets
Total Assets
$ 1.330.0
$ 3.700.0
$ 4.600.0
$ 2.840.0
S
