A firm currently uses straight line depreciation so that depreciation expense in 2008 will be the same as in 2007.

Depreciation expense in 2007 was $5,000.

Sales are expected to grow by 30% in 2008.

All net income is paid out in dividends and no new stock issues are planned.

Notes payable at the end of 2007 will be paid off in 2008.

Calculate total assets and additional funds needed for 2008.

Year End 2007

Cash $15,000

Accounts Receivable 20,000

Inventory 35,000

Fixed Assets, Gross 75,000

Accumulated Depreciation 15,000

Fixed Assets, Net 60,000

Accounts Payable $15,000

Notes Payable 25,000

Long-term Debt 30,000

Common Equity $60,000