Kizspy | Question: 46
(Choose 1 answer)
The most recent financial statements for Alpha Co. are shown below.
Assets and costs are proportional to sales. Debt is not. A dividend of $90 was paid, and Alpha wants to maintain a constant payout to net income. Next year's sales are projected to be $480. What is external financing needed (EFN)?
A. $240
B. $132
C. $60
D. $168
Income Statement
Sales $400
Cost
$200
Balance Sheet
$1,200 Debt $600
Equity $600
Taxes $50
$1,200 Total $1,200
Asset
Total
Net Income $150
