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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 20% if the

Given the financial statements below for Dragonfly Enterprises, what is the external financing need for a pro forma increase in sales of 20% if the company is operating at 90% 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, Gen & Admin Exp

62

Depreciation

20

Earnings Before Int & Tax

62

Interest Expense

12

Taxable Income

50

Taxes at 40%

20

Net Income

30

Dividends

9

Addition to Retained Earn.

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 Eq

265

300

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