4. 24.

Calculating EFN [LO 4.2] The most recent financial statements for Cunderdin Flowers Limited follow. Sales for 2020 are projected to grow by 20 per cent. Finance cost will remain constant; the tax rate and the dividend payout rate will also remain constant. Cost of sales, other expenses, current assets, non-current assets and accounts payable increase spontaneously with sales. If the firm is operating at full capacity and no new debt or equity is issued, what external financing is needed to support the 20 per cent growth rate in sales?

Transcribed Image Text:

Cunderdin Flowers Limited Statement of profit or loss for 2019 Revenue $980 760