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Consider the financial statements below (in $000): Revenue $200,000 Cost of Goods Sold 120,000 Gross Profit 80,000 Operating Expenses 30,000 Operating Income 50,000 Interest Expense
Consider the financial statements below (in $000):
Revenue | $200,000 |
Cost of Goods Sold | 120,000 |
Gross Profit | 80,000 |
Operating Expenses | 30,000 |
Operating Income | 50,000 |
Interest Expense | 10,000 |
Earnings before tax | 40,000 |
Income tax expense (30%) | 12,000 |
Net Income | 28,000 |
Cash (min desired balance) | 20,000 |
Accounts Receivable | 40,000 |
Inventory | 30,000 |
Property, Plant, & Equipment, net | 150,000 |
Total Assets | $240,000 |
Accounts payable | 20,000 |
Long-term debt | 120,000 |
Common Stock | 40,000 |
Retained earnings | 60,000 |
Total Liabilities and equity | $240,000 |
Assumptions:
- Sales increase: 48%
- Net Capex: $22,000
- Operating margin: 30%
- Interest expense: no change
- Retention ratio: 40%
Given the above assumptions, what is the External Financing Need (EFN)?
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