How much is required in external financing if first-stage pro forma statements indicate $1 million in net income,$300,000 in dividends,and a $900,000 increase in total assets?

Question

Quizplus · Accepted Answer

The retained earnings are $700,000 ($1,000,000 net income - $300,000 dividends). The increase in assets is $900,000, so external financing required is $200,000 ($900,000 - $700,000).

How Much Is Required in External Financing If First-Stage Pro