How much would the external financing needs

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Coconut Express (CE) has $5,000,000 in total assets and pays a dividend of 40% out of net earnings. Its debt-equity ratio is 1.0 and its net income margin is 5%. Last year's sales were in the amount of $2,000,000. If sales increase by 15% next year, how much would the external financing needs be for CE if it is working at 100% of capacity? How would this change if CE were working at 80% capacity? Show your results neatly. Consider all liabilities are spontaneous (suppliers and accruals)

Reference no: EM131865034

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