Net Income $120,870 Dividend $39,250 Addition to Retained Earning Balance Sheet 2017 Assets Liabilities and Owners Equity Current Assets Current Liabilities Cash $27,920 A/P $ $71,720 A/R $42,630 N/P $17620 Inventory $95,910 Total $89,340 Total $166,460 Fixed Assets Net Plant and Equipment $455,980 Total Assets $622,440 Long Term Debt $170,000 Owner's Equity Common Stock Paid in Surplus $140,000 Retained Earning $223.100 Total $363,100 Total Liab and OE $622,440 Presume the sales are expected grow by 20% in 2018. Interest expenses will remain constant, the tax rate and the dividend payout will also remain constant. Costs, other expenses, current assets, fixed assets, and accounts payable will increase by sales. If the firm is operating at full capacity and no new debt or equity is issued what external financing will be required to support the 20% growth in sales? 2017 Income Statement Sales $980,760 Costs $792,960 Other Expenses $20,060 EBIT Interest paid Taxable income Taxes 21% Net Income $167,740 $14.740 $153,000 $32.130 $120,870 Dividend $39,250 Addition to Retained Earning Assets Current Assets Cash $27.920 A/R $42,630 Inventory $95,910 Total $166,460 Balance Sheet 2017 Liabilities and Owners Equity Current Liabilities AJP $ $71,720 NIP $17620 Total $89.340 Long Term Debt $170,000