Previous Years
Sales	1400	Retained Earnings	170
Costs	900	Dividends	180
Tax rate	0.3
Assets Current Assets		Liabilities/Equity Current Liabilities
Cash	460	Creditors	600
Debtors	540	Short Term Notes	100
Inventory	600
Non-Current Assets		Non-Current Liabilities

PP&E Debentures 900

Total Assets

Owners Equity

Retained Profits 1000

Ordinary Shares 1000

3600

Percentage of Sales Approach Assume all spontaneous variables move as a percentage of sales.

1. Given an expected increase in sales of 12%, what is the amount of external funding required?
2. To maintain the current debt/equity ratio how much debt and how much equity is required?
3. Assuming the company is only operating at 95% capacity, how much new funding (if any) is required?