Question

XYZ has the following financial information for 2017:

Sales = $2M, Net Inc. = $0.4M, Div. = $0.1M

C.A. = $0.4M, F.A. = $3.6M

C.L. = $0.2M, LTD = $1M, C.S. = $2M,  R.E. = $0.8M

In 2018, the XYZ sales are projected to be $2.4M.

Assume that XYZ operates at the full capacity, and profit margin and dividend payout ratio remain constant.

What is the amount of external financing needed ? Report the value only ($ ___ M)

Answer 1