Busines has been slow; therefore, fixed assets are vastly underutilized. Management belleves it can double sales next year with the introduction of a new product. No new flxed assets will be required, and management expects that there will be no earnings retained next year. What is next year's external flnancing requirement?

WNSWER

Here is the forecasted balance sheet:

Current assets

Net fixed assets

Total assets

Exterual financing requirenent $=$

Accounts payable

Notes payable

Long$-$term debt

Common equity

Total llabilities

and cquity