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Ft+1 = (AS x Assets0) - (AS x Liabilities o) - NPM x S x (1- Retention rate) Where ASS1-So = So Substituting gives:

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Ft+1 = (AS x Assets0) - (AS x Liabilities o) - NPM x S x (1- Retention rate) Where ASS1-So = So Substituting gives: R30m-R3m (R650m x 5% x 0,40) = R14m The company will thus require R14 million of external funding in the coming year.

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