Company XYZ is expecting an 8% growth in sales. Based on the following information, calculate the additional funds needed (AFN), if any, to support the new level of sales.

2) Based on the following information, calculate the self-supporting growth

Company XYZ is expecting an 8% growth in sales. Based on the following information, calculate the additional funds needed (AFN), if any, to support the new level of sales. Sales $7,560,000 Dividends $75,000 Op. costs (excl. depr.) $6,750,000 Add. to RE $147,000 Depreciation $300,000 Common shares 500,000 EBIT $510,000 EPS $0.44 Interest $140,000 DPS $0.15 EBT $370,000 Ending stock price $27.72 Taxes 40% $148,000 Net income $222,000 Assets Equity Cash A/R Inventories Total CA $30,000 $35,000 $550,000 $615,000 Liabilities A/P & accruals Line of credit Total cu $105,000 $10,000 $115,000 Net fixed assets Total assets $1,500,000 $2,115,000 Long-term debt Total liabilities $1,400,000 $1,515,000 Common stock Retained earnings Total common equ. $350,000 $250,000 $600,000 $79,800 $1,240.00 $2,040.00 No additional funds needed. AFN equaled - $78,960.34 Sales Based on the following information, calculate the self-supporting growth. $7,560,000 Dividends Op. costs (excl. depr.) $6,750,000 Add. to RE Depreciation $300,000 Common shares EBIT $510,000 EPS Interest $140,000 DPS $370,000 Ending stock price Taxes 40% $148,000 Net income $222,000 $75,000 $147,000 500,000 $0.44 $0.15 $27.72 Assets Equity $105,000 Cash A/R Inventories Total CA $10,000 Liabilities A/P& accruals Line of credit Total CL $30,000 $35,000 $550,000 $615,000 $115,000 Net fixed assets Total assets $1,500,000 $2,115,000 Long-term debt Total liabilities $1,400,000 $1,515,000 Common stock Retained earnings Total common equ. $350,000 $250,000 $600,000 It cannot self-support. The result is -26.53% 7.89% 7.93% It cannot self-support. The result is -27.02%