Any accountants in here?

[crew_dawg16]

I'm having some trouble figuring this question out, I keep coming up with $16513.07 and it's not correct.


The most recent financial statements for Scanlin, Inc., are shown here:

INCOME STATEMENT

Sales $20,900
Costs $17,300
Taxable income $3,600
Taxes (35%) $1,260
Net income $2,340

BALANCE SHEET

Assets $98,000

Total $98,000

Debt $21,560
Equity $76,440

Total $98,000

Required:
Assets and costs are proportional to sales. Debt and equity are not. A dividend of $993.72 was paid, and the company wishes to maintain a constant payout ratio. Next year's sales are projected to be $24,740. What is the external financing needed? (Do not include the dollar sign ($). Round your answer to 2 decimal places. (e.g., 32.16))



I've been figuring the percentage of the increase, applying it to the costs, subtracting taxes from the TI, then subtracting the Div. paid (I come up with 1101.77) from the NI. Can someone tell me where I'm going wrong?

 

[About2bite]

Assets = liabilities + owners equity

 

[crew_dawg16]

Assets = liabilities + owners equity

Obviously, this is not very helpful.

 

[2veloce]

Sales $20,900 20900.00 24700.00
Costs $17,300 17300.00 20445.45
Taxable income $3,600 3600.00 4254.55
Taxes (35%) $1,260 1260.00 1489.09
Net income $2,340 2340.00 2765.45
Dividend 993.72 1174.40

42.47% 42.47%

1346.28 1591.06

If sales increase is kown and cost of sales do not change as a percentabe of sales No additional financing need (1) unless AR goes beyond normal payment terms or (2) tax rate increases

 

[crew_dawg16]

Sales $20,900 20900.00 24700.00
Costs $17,300 17300.00 20445.45
Taxable income $3,600 3600.00 4254.55
Taxes (35%) $1,260 1260.00 1489.09
Net income $2,340 2340.00 2765.45
Dividend 993.72 1174.40

42.47% 42.47%

1346.28 1591.06

If sales increase is kown and cost of sales do not change as a percentabe of sales No additional financing need (1) unless AR goes beyond normal payment terms or (2) tax rate increases

I've come up with these numbers as well, but assets also increase in proportion to sales, which is where the imbalance comes from and I cannot seem to get the stupid online homework thing to accept an answer.:fm:

 

[baginoman]

I've come up with these numbers as well, but assets also increase in proportion to sales, which is where the imbalance comes from and I cannot seem to get the stupid online homework thing to accept an answer.:fm:

what online system are you using? Sometimes they are wrong.

 

[About2bite]

Obviously, this is not very helpful.

Consider yourself lucky since you can only not come up with one answer. I have a Annual Report Project due in my accounting class in the morning over one of our accounting books that we have yet to even go over, and the best part is that the project covers all the material in the book.

Sucks!

 

[2veloce]

If I wasn't on drugs, I would be more helpful.

Liabilities should increase by the change in COS/taxes and Equity by the change in profit.

The only change in Assets is the change in Gross Sales