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Hello. Can someone please assist me in understanding this forecasting problem? Thank you. Suppose that ABC organization's current Sales = 20,000. Also, suppose ABC has

Hello. Can someone please assist me in understanding this forecasting problem? Thank you.

image text in transcribed Suppose that ABC organization's current Sales = 20,000. Also, suppose ABC has forecast the following values: Costs of goods sold (% of sales) 0.85 General, selling, and administrative expenses (% of Sales) 0.10 Cash and securities (days sales cash) 15 Accounts receivable (collection period) 50 Inventories (inventory turnover) 10 Accounts payable (payables period) 60 Where days sales cash = cash / (sales/day), the collection period = AR / (sales/day), and the payables period = AP / (cost of sales/day). Complete the template below before solving for the additional funds, or the external funding, needed to finance a 30% increase in sales. Income Statement Sales Cost of goods sold Gross profit Expenses: General, selling, and administrative expenses Net interest expense 100 Earnings before taxes Tax Earnings after tax Balance Sheet Assets Current assets: Cash and securities Accounts receivable Inventories Prepaid expenses Total current assets 20 Net fixed assets 300 Total assets Liabilities and owners' equity Current liabilities Bank loan Accounts payable 0 Current portion of longterm debt 100 Accrued wages Total current liabilities 30 Longterm debt 700 Common stock 150 Retained earnings 1500 Total liabilities and owners' equity External funding required ??? Please show formulas to assist in comprehension of how it was completed. Thank you

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