Determine the Additional Funds Needed for the following two scenarios:

1) After Year 1, sales will increase 7% per year. The assumption regarding Cost of Goods Sold would remain the same

2) After Year 1, sales would decrease by 3% per year and Cost of Goods Sold would increase 1% per year.

Balance sheet information

Assets: Current Assets $995,000 Fixed Assets $3,000,000 Total Assets: $3,995,000

Liabilities: Accounts Payable $300,000 Notes Payable $700,000 Other Current Liabilities $195,000

Bonds Payable:$1,200,000

Total Liabilities $2,395,000

Equity: $1,600,000

Current Sales: $14,000,00.00

Year one: Sales will increase $1,400,00.00

Years 2-5: Sales will grow by 5%

COGS: Increase by 2% per year

Profit Margin: 20%

Pay Out Ratio : 30%