H&M is planning to implement a warehouse to house all the cosmetics. Included will be building of a manufacturing facility that will cost $400,000 in 2014 and is expted to lower the company's variable cost per foundation.

Prepare a statement of external financing required.

Key Projected Data (2014)

Data	Value
Sales	Increase to $6,500,000
COGS	Remain the same % of sales
Selling Expense	Increase by 22%
General and Admin Expenses	Increase by 37.5%
Accumulated Amortization	Increase to $685,000
Interest Expense	Increase to $97,000
Tax Rate	40%
Divident Payments	$20,000
Average age of inventory	56 days
Average collection period	52 days
Average payment period	26 days
Accruals	Increase to $96,000
Long-term debt, preferred shares, and common shares	Remain the same

Income Statement, Dec. 31, 2013

Balance Sheet, December 31, 2013

Sales revenue Less: Cost of goods sold Gross margin Less: Operating expenses Selling expense General and administrative expenses Amortization Expense Total operating expense Operating Earnings (EBIT) Less: Interest expense Earnings before taxes Less: Taxes (rate 40%) Net income after taxes $5,075,000 3,704,000 1,371,000 $650,000 416,000 152,000 1.218.000 153,000 93,000 60,000 24.000 $36,000