Rework Problem 8 assuming that Genatron Manufacturing expects its sales to increase by 20 percent in 2015. What is the amount of external financing needed?

Rework Problem 8

Genatron Manufacturing expects its sales to increase by 10 percent in 2016. Estimate the firm’s external financing needs by using the percent-of-sales method for the 2017 data. Assume that no excess capacity exists and that one-half of the 2017 net income will be retained in the business.