What is its discretionary financing need

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Reference no: EM132343770

When preparing a pro forma balance sheet, the company forecasts $8 million in projected sales. The cash needed is projected to be 5% of sales, PP&E are 40% of sales, and account receivable 15% of sales, with a steady accounts payable of 10% of sales.

Since the company has no long term debt, what is its discretionary financing need? The pro forma income is $2.5 million and shareholder's equity is $1 million.

Reference no: EM132343770

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