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Global developed the pro forma financial statements given below. Assume that Global Corp. expects sales...

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Accounting

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Global developed the pro forma financial statements given below. Assume that Global Corp. expects sales to grow by 9% next year, pays out 40% of its net income, and needs $8.8 million of net new financing. If Global decides that it will limit its net new financing to no more than $8.1 million, how will this affect its payout policy? Click the icon to view Global's financial statements. cut its payout to shareholders by $ 0.7 million to make up the difference on its balance If Global limits new financing to only $8.1 million, then it would need to sheet. (Round to one decimal place.) Income Statement ($ million) Net Sales Costs Except Depreciation EBITDA Depreciation and Amortization EBIT Interest Expense (net) Pre-tax Income Income Tax Net Income 183.7 - 179.2 4.5 - 1.2 3.3 -7.7 - 4.4 1.1 -3.3 Balance Sheet ($ million) Assets Cash Accounts Receivable Inventories Total Current Assets Net Property, Plant, and Equipment Total Assets 23.5 18.4 15.9 57.8 112.4 170.2 Liabilities and Equity Accounts Payable Long-Term Debt Total Liabilities Total Stockholders' Equity Total Liabilities and Equity 33.4 119.4 152.8 17.4 170.2

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