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Big Test Inc. had sales last year of $100mm. Sales are expected to grow 20% next year. To support the new sales level, the production
Big Test Inc. had sales last year of $100mm. Sales are expected to grow 20% next year. To support the new sales level, the production manager has indicated that fixed assets will need to increase by $30mm. Last year's balance sheet showed the following: = == = O Current assets = $20mm o Fixed assets = $90mm o Accounts Payable = $10mm o Notes Payable = $20mm Long-term Liabilities = $30mm o Common Stock = $20mm o Retained Earnings = $30mm Given this data, what is the forcast level of total financing need? (Note: use the standard assumptions from lecture)
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