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Given the following information : Current assets=$400, fixed assets = $500, Accounts payable $100; Notes Payable = $45; Long term debt= $455, equity = $300;
Given the following information : Current assets=$400, fixed assets = $500, Accounts payable $100; Notes Payable = $45; Long term debt= $455, equity = $300; Sales = $450; Cost= $ $400; tax rate= 34%;. Suppose that current assets , costs and accounts payable maintain a constant ratio to sales. If the firm is producing at 80% capacity, what is the total external financing needed if sales increase 25%? Assume the firm pays no dividends.
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