1. a. (10) Crum Co's balance sheet and income statement for 2001 are given below. The firm expects sales to grow by 50% in 2002. Operating costs, spontaneous liabilities, and assets will increase in proportion to sales. The company plans to finance any additional funds needed using debt at an interest rate of 10%. What is the company's projected funds needed for 2002? Assume interest expenses are 10% of the beginning year of debt balance 2001 2002 1st pass 2002 2nd pass Sales $1,000 Operating costs EBIT 200 Interest 16 184 Taxes (40%) 73.6 Net Income 110.40 Dividends (60%) 66.24 Addn. TO RE 44.16 150 Cash AR Inventories Total CA Gross FA Accum.Depreciation Net FA 700 80 620 Total assets 1000 A/P and accruals 150 Debt 200 Common stock 150 Retained Earnings 500 Total Liab.& Equity 1000