EFN Calculation

EFN Calculation

The most recent Financial Information for Golf Pro Inc. are shown here:

Income Statement Balance Sheet

Sales $3,400 Current Assets $4,400 Current Liabilities $880

Costs 2,800 Fixed Assets 5,700 Long Term Debt 3,580

Taxable Income 600 Equity 5,640

Taxes @ 34% 204 Total 10,100 Total $10,100

Net Income $ 396

Assets, costs and current Liabilities are proportional to sales. Long –term Debt and equity are not. The company maintains a constant 50% dividend payout ratio. As with every other firm in its industry, the next year’s sales are projected to increase by exactly 15%. What is the external financing needed?