Assets and costs are proportional to sales

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Reference no: EM131023360

The most recent financial statements for Dockett, Inc., are shown here (assuming no income taxes):

Income Statement Sales $ 8,600 Costs 5,630 Net income $ 2,970

Balance Sheet Assets $ 16,100 Total $ 16,100

Debt $ 6,400 Equity 9,700 Total $ 16,100

Assets and costs are proportional to sales. Debt and equity are not. No dividends are paid. Next year’s sales are projected to be $10,578.

What is the external financing needed? (Round your answer to 2 decimal places. (e.g., 32.16))

Reference no: EM131023360

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