2. Calculate additional funds needed based on the assumption that the firm has sufficient excess capacity in their fixed assets for any expansion in the coming year. You may still assume that current assets are proportional to sales.
Make all other assumptions as in problem #1.
NS0 =	$1,600,000.00
NI0 =	$160,000.00
Current assets =	$520,000.00	req inc in sales = '(TA0/NS0)*Delta_Net_Sales
fixed assets =	$480,000.00	examine TA0/NS0 more closely
accounts payable =	$48,000.00	note that TA0= Fao where
accrued liabilities =	$32,000.00	CA0 = current assets as time 0,
g =	35%	FA0 = fixed assets at a time 0
retention rate	100%
forcasted sales NS1 =	$2,160,000.00	req inc in sales = ='((CA0+FA0)/NS0*Delta_Net_Sales)
delta_net_sales =	$560,000.00	(CA0+FA0)/NS0=CA0/NS0+FA0/NS0
total assets =	$1,000,000.00	req incr in sales = '(CA0/NS0+FA0/NS0)*Delta_Net_Sales
Required increase in assets		req incr in sales = '(CA0/NS0+FA0/NS0)*Delta_Net_Sales
-Spontaneously Generated funds	-$28,000.00	=(CA0/NS0)*Delta_Net_Sales
Increase in Retained Earnings	-$216,000.00	+(FA0/NS0)*Delta_Net_Sales
AFN =		=increase in CA +increase in FA