The most recent financial statements for cornwall, inc., are shown here: income statement balance sheet sales $ 6,000 current assets $ 2,700 current liabilities $ 2,200 costs 4,950 fixed assets 9,100 long-term debt 3,750 taxable income $ 1,050 equity 5,850 taxes (34%) 357 total $ 11,800 total $ 11,800 net income $ 693 assets, costs, and current liabilities are proportional to sales. long-term debt and equity are not. the company maintains a constant 40 percent dividend payout ratio. as with every other firm in its industry, next year’s sales are projected to increase by exactly 10 percent. what is the external financing needed? (do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.)

Free of jargon and technical language

6x 2.54 is 15.24, answer is c

Secured loans are protected by collateral security. examples: title loans where the borrower uses the car title as collateral security interest rates are lower and repayments are longer therefore risk is low as a collateral security is given as guarantee to the bank in case of failure to pay the loanunsecured loans are not protected by collateral security but it is given on the creditworthiness of the borrower, trusting that she/he will pay on time. examples; payday loans is a short term loan where the borrower lends money from the bank and pays is back when the borrower receives his/her wages.interest rates are high and repayments are shorter. but the risk is high as no collateral security is given as a guarantee to the bank for payment of the loan