Compute the amount of new funds required to finance

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Reference no: EM1362529

Following this balance sheet for 2006

Assets

Cash $15,000
Accounts Receivable - 90,000
Inventory - 60,000

Current Assets - $165,000
Fixed Assets - 60,000

Total Assets - $225,000

Liabilities

Accounts Payable $90,000
Notes Payable 30,000
Accrued Expenses 7,000

Current Liabilities 127,000

Common Stock 75,000
Retained Earnings 22,500

Total Liabilities and Equity 225,000

Sales for 2005 were $300,000. Sales for 2006 have been projected to Increase by 20%. Assuming that my company is operating below capacity, calculate the amount of new funds required to finance the projected growth. My company has an 8% return on sales and 70% is paid out as dividends. I will need to prepare a Percent of Sales table.

Reference no: EM1362529

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