The most recent financial statements for Kerch, Inc., are shown here (assuming no income taxes): Income Statement Balance Sheet Sales $ 8,400 Assets $ 14,000 Debt $ 6,000 Costs 6,390 Equity 8,000 Net income $ 2,010 Total $ 14,000 Total $ 14,000 Assets and costs are proportional to sales. Debt and equity are not. No dividends are paid. Next year’s sales are projected to be $9,996. What is the external financing needed? (Do not round intermed

$268.10

Explanation:

Assets and Costs are proportional to sales meaning they grow at the same rate.

Sales rate of growth is,

= (9,996-8,400)/8400

=19%

Assuming that costs grew by 19% then Costs next year will be ,

= 6,390 * (1 + 0.19)

= $7,604.1

Meaning that Net Income is,

= Sales - Costs.

= 9,996 - 7,604.1

= $2,391.9

Retained earnings or net income is added to Equity

Total Equity= 8,000 + 2391.9

Total Equity =$10,391.90

Total Assets also grew by 19% as per the question so,

= 14,000* (1 + 0.19)

=$16,660

Going by the Accounting Equation,

Total assets = Total equity + Total debt

Hence external financing needed

16,660 = 10391.9 + 6000 + Additional funding

Additional funding = 16,660 - 10391.9 - 6,000

Additional funding = $268.10

ans.

heterothermic organisms include those organisms that can switch between homeothermic (having body temperature higher than environment) and poikilothermic (having variation in internal body temperature) strategies.

some migratory birds show heterothermy as they decrease their metabolic rate during cold nights to keep their body temperature low. drop in metabolic rate allows increase in production efficiency of birds that reduces the internal body temperature to make it equal to external cold temperature during cold nights.

thus, the correct answer is 'birds allow their temperature drop in order to increase their production efficiency.'