42.(5 points) The following is the balance sheet for 2016 for Marbell Inc.

Marbell Inc.

Balance Sheet

12/31/2016

AssetsLiabilities & Shareholders' Equity

Cash$15,000Accounts Payable$90,000

Accounts Receivable90,000Accrued Expenses7,500

Inventory60,000Notes Payable30,000

Current Assets165,000Current Liabilities127,500

Capital Assets60,000Common Stock75,000

Retained Earnings22,500

Total Assets$225,000Total L & S.E.$225,000

Sales for 2016 were $300,000. Sales for 2017 have been projected to increase by 20%. Marbell Inc. is operating below capacity and needs no additional investment in capital assets. Marbell has an 8% return on sales and 70% is paid out as dividends.Use the RNF method to determine the amount of new funds required to finance this growth.