I don't understand how to figure out the total amount of assets and costs needed to project the EFN based on the information given.

Compute and evaluate Fuling's external financing needed (EFN) in the event that sales grow 25% in the upcoming year, and explain each factor which the company must consider in planning for this level of growth. Specifically, consider capacity utilization and external financing needed.

B. Compute and evaluate Fuling's options in the event that sales subsequently grow an additional 50% and the firm wishes to maintain current assets at 20% of sales, explaining which components of its financial policy the company must consider in planning for this level of growth. Specifically, consider profit margin, dividend policy, financial policy, and total asset turnover.

Responses should comprise.

Post two additional replies to classmates, offering critical analyses and comments relating to their determinations and evaluations of Fuling's options. Please cite sources of additional research, and examine areas where you do and do not believe that your classmates' statements make optimal use of assigned readings, or could otherwise include additional considerations

50% increase in sales

Given:

Current Sales

$ 1,000

Current Assets (Ratio to Sales)

20%

Increase in Liabilities and Owner's Equity

$225

Net fixed assets (Ratio to Sales)

180%

Costs (Ratio to Sales)

80%

Profit Margin

Constant

Existing Priorities

Leave total net working capital unchanged

Keep dividend payout ratio constant

Table 1. Fuling Data