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A firm has the following balance sheet: Cash $ 20 Accounts payable $ 20 Accounts Receivable 30 Notes payable 50 Inventory 30 Long-term debt 80

A firm has the following balance sheet:

Cash

$ 20

Accounts payable

$ 20

Accounts Receivable

30

Notes payable

50

Inventory

30

Long-term debt

80

Net Fixed assets

180

Common stock

90

Retained earnings

20

Total assets

260

Total liabilities and Equity

260

Sales for the year just ended were $400. The firm is operating at much less than full capacity, so it will not need to increase fixed assets. Sales are expected to grow by 5 percent next year, the profit margin is 6 percent, and the dividend payout ratio is 60 percent. How much additional funding will be needed by the firm?

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