It is the end of 2017 and you are attending a meeting at the headquarters offices to share with the central management your sales forecasts for the year 2018 and any resources you may need, if any. Your sales forecasts for 2018 are 10% higher than this years sales. Explain to other members your financing needs for the coming year given the following information:

Additional information:

Your company is currently operating at full capacity. Your company doesnt intend to pay any dividends.

Explain to other members why the increase in sales requires extra financing?

Say they didnt approve the extra financing, is there any possible way to achieve the new level of sales without the extra financing? Assume that youre a large store and you most of the time set the terms.

INCOME STATEMENT	2017
Sales	$3,000
COGS	1,800
Gross Margin	1,200
Operating Expenses	$900
EBIT	$300
Less Interest on Debt (10%)	$100
Earnings before taxes	$200
Taxes (30%)	$630
Net income for common	$140

BALANCE SHEET	2017
ASSETS Current Assets L.T. Assets	$1,200 $2,300
Liabilities and equity
Account payables	$600
Notes payables Paid in Capital	$1,000 $1,900
Retained earnings	$0
Total	$3,500