Using a computer spreadsheet, the information presented below, and the modified equations determined in question 6 above, extend the fore- cast for R&E Supplies contained in Table 3.5 through 2010. Is R&E's external financing required in 2009 higher or lower than in 2010? R&E Supplies Assumptions for 2009 (S thousands) Growth rate in net sales 30.0% Tax rate 45.0% Cost of good sold/net sales 86.0% Gen, sell. & admin. Dividend/earnings after tax Current assets/net sales 50.0% 29.0% expenses/net sales 11.0% Net fixed assets $270 Long-term debt $560 Current liabilities/net sales 14.4% Current portion long-term debt $100 Interest rate 10.0%

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