PROJECTED FINANCIAL STATEMENT METHOD SOLVING

The following is the balance sheet for 2006 for Marvel, Inc.;

Marvel Inc.

Balance Sheet

2006

Assets:

Cash 150,000

Accounts Receivable 900,000

Inventory 600,000 1,650,000

Fixed Assets 600,000

Total Assets 2,250,000

Liabilities and Equity

Accounts Payable 900,000

Notes Payable-ST 300,000

Accrued Expenses 75,000 1,275,000

Common stock 750,000

Retained Earnings 225,000

Total liabilities and Equity 2,250,000

Sales for 2006 were P3,000,000. Sales for 2007have been projected to increase by 20%. Marvel, Inc. is operating below capacity. The company has an 8% return on sales (Net Income) and 70% is paid out as dividends.

Required: Compute for the amount of new funds required and show the new balance sheet as of 2007 and type if it's either a surplus (total liabilities and equity is greater than assets) or additional funds needed (if assets are greater than total liabilities and equity)