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Below is information from the Balance Sheet of Yvone and Co. During the next year sales are expected to increase by 25% from the current

Below is information from the Balance Sheet of Yvone and Co. During the next year sales are expected to increase by 25% from the current value of $1,000. 10% of sales becomes net profit and Yvone pays a 50% dividend. Current assets and current liabilities are expect to increase by the same proportion as sales and an investment of $40 in capital assets will be required. How much capital will Yvone need to raise to fund this growth?

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\begin{tabular}{lrlrr} Current Assets & $250 & Current Liabilities & $ & 100 \\ Capital Assets & $1,750 & Long term Debt & $1,200 \\ & & Total Debt & $1,300 \\ & & Total Equity & $ & 700 \\ \hline Total Assets & $2,000 & Total debt and Equity & $2,000 \end{tabular}

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