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Banana Bread Republic anticipates a 17% growth in sales next year and would like to know if external financing will be required. The company has
Banana Bread Republic anticipates a 17% growth in sales next year and would like to know if external financing will be required. The company has provided you with the following financial information: Banana Bread Republic Balance Sheet As at December 31, 2020 Assets Cash $ 47,000 Accounts receivable 102,000 Inventory 180,000 Total current assets 329,000 Net capital assets 540,000 Total assets $ 869,000 Liabilities and shareholders equity Accounts payable Accrued liabilitie Total current liabilities Long term debt Total liabilities Common shares Retained earnings Total liabilities and shareholders equity $ 130,000 19,000 149,000 239,000 388,000 30,000 451,000 $ 869,000 Sales last year were $600,000, with a profit margin of 8%. The company estimates the profit margin will be maintained. The company has a policy of paying out 30% of profits each year as dividends. Production is currently at capacity and management believes that it will cost $48,000 to increase the capacity enough to accommodate the increase in sales. Estimate the new funding that will be required. Round to nearest whole number (e.q. 1,355). If your answer is negative, please use a negative sign Answer: $ Use the box below to show your work-students who show their work may be eligible for partial marks. Final answers MUST be filled in above. Write an optional reasoning for your
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