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Great Wall Co. believes it can increase sales by 50% without any increase in net fixed assets. Earnings after tax are expected to be $2,000.

Great Wall Co. believes it can increase sales by 50% without any increase in net fixed assets. Earnings after tax are expected to be $2,000. The company pays no dividends. What additional financing will Subs need to finance this growth? Subs balance sheet currently is as follows:

Cash $ 2,500 Accounts Payable $ 5,600

Accounts Rec. 4,400 Notes Payable 10,000

Inventory 6,000 Long-term Debt 15,000

Fixed As sets, net 47,700 Stockholder

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