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Given the following information: cash = $50, accounts payable = $100, notes payable = $100, inventory = $150, long term debt = $350, fixed assets
Given the following information: cash = $50, accounts payable = $100, notes payable = $100, inventory = $150, long term debt = $350, fixed assets = $600, equity = $250, sales = $800, costs = $600 and tax rate = 34%. The firm retains 40% of earnings. If the firm is producing at only 80% capacity, what is the total external financing needed if sales increase by 35%?
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