Introduction to Finance Week 5 – Numerical Exercises
Given the compressed version of balance sheet and income statement; estimate the amount of external financing needed to increase sales by 20% next year. (use percentage of sales method)
(Dividend payout is 50%)
(Dividend payout is 50%)
Balance Sheet (End of the Year)
Assets $2,000
Debt $1000
Equity $1000
Total $2000 $2000
Total $2000 $2000
Income Statement
Sales $1000
Costs 800
Net Income 200
