Period Variables	Current	Projected		Current	Projected		Current	Projected
Sales	$100,000	$120,000	Assets			Liab.&Own -ers Equ.
Cost	$ 75,000		Short Term	$60,000		Debt	$40,000
Net Income			Long Term	$20,000		Equity	$40,000

As we said in class all models are built on assumptions:

1 Dividend payout ratio is 50% therefore, the retention rate is the remainder

2 All assets and noninterest bearing liabilities vary is the same proportion as sales

3 Use the following equation to find the additional funding needed (AFN):

.

REQUIRED:

1. Find the AFN using the model equation above

2 Fill in the blanks in the table above.

3. Write a paragraph on findings or conclusion after your perform the algorithmic modelling