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

Income Statement Balance Sheet Sales$41,000 Assets$152,000 Debt$45,500 Costs 27,700 Equity 106,500 Taxable income$13,300 Total$152,000 Total$152,000 Taxes (22%) 2,926 Net income$10,374

Assets and costs are proportional to sales; debt and equity are not. A dividend of $3,650 was paid, and the company wishes to maintain a constant payout ratio. Next year’s sales are projected to be $47,150.

What is the external financing needed? **(Do not round intermediate calculations.)**

- If Muenster, Inc., has an equity multiplier of 1.47, total asset turnover of 1.6, and a profit margin of 5.7 percent, what is its ROE?
**(Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)**

During the year, the Senbet Discount Tire Company had gross sales of $1.26 million. The company’s cost of goods sold and selling expenses were $595,000 and $248,000, respectively. The company also had notes payable of $870,000. These notes carried an interest rate of 7 percent. Depreciation was $125,000. The tax rate was 25 percent.

**a.**What was the company’s net income? **(Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars, rounded to the nearest whole dollar amount, e.g., 1,234,567.)**

**b.**What was the company’s operating cash flow? **(Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars, rounded to the nearest whole dollar amount, e.g., 1,234,567.)**