How much equity financing is required for next year

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Reference no: EM132035307

Urban's, which is currently operating at full capacity, has sales of $47,000, current assets of $5, 100, current liabilities of $6, 200, net fixed assets of $51, 500, and a 5 percent profit margin.

The firm has no long-term debt and does not plan on acquiring any. The firm does not pay any dividends. Sales are expected to increase by 3 percent next year.

If all assets, short-term liabilities, and costs vary directly with sales, how much additional equity financing is required for next year?

Reference no: EM132035307

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