Answer 1: Given the assumptions in Exhibit 3, when Flash doesn't invest in a new product line the required external financing in additional notes payable is $14,305,48 million in 2010, $16,913.77 million in 2011 and $13,324.43 million in 2012, requiring loans due to <70% notes payable/accounts receivable ratio. Interest rate rises to 9.25%. Forecasted income statements and balance sheets with external financing are below on page 3-5.