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Given the financial statements below for Dragonfly Enterprises, what is the external financing need for a pro forma increase in sales of 18% if the

Given the financial statements below for Dragonfly Enterprises, what is the external financing need for a pro forma increase in sales of 18% if the firm is operating at 91% capacity? Enter your answer as the nearest whole (e.g., 123), but do not include the $ sign.

Dragonfly Enterprises

Income Statement ($ Million)

2011

Sales

370

Cost of Goods Sold

226

Selling, General, & Admin Exp.

62

Depreciation

20

Earnings Before Interest & Taxes

62

Interest Expense

12

Taxable Income

50

Taxes at 40%

20

Net Income

30

Dividends

9

Addition to Retained Earnings

21

Balance Sheets as of 12-31

Assets

2010

2011

Cash

10

10

Account Receivable

46

50

Inventory

43

45

Total Current Assets

99

105

Net Fixed Assets

166

195

Total Assets

265

300

Liabilities and Owners Equity

2010

2011

Accounts Payable

26

30

Notes Payable

0

0

Total Current Liabilities

26

30

Long-Term Debt

140

150

Common Stock

22

22

Retained Earnings

77

98

Total Liab. and Owners Equity

265

300

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