Question 3 (5 marks) 170 180 Previous Years Sales Costs Tax rate Assets Current Assets Cash Debtors Inventory Non-Current Assets PP&E Total Assets 600 100 1400 Retained Earnings 900 Dividends 0.3 Liabilities/Equity Current Liabilities 460 Creditors 540 Short Term Notes 600 Non-Current Liabilities 2000 Debentures 3600 Owner's Equity Retained Profits Ordinary Shares 900 1000 1000 3600 Percentage of Sales Approach Assume all spontaneous variables move as a percentage of sales. a) Given an expected increase in sales of 12%, what is the amount of external funding required? b) To maintain the current debt/equity ratio how much debt and how much equity is required? c) Assuming the company is only operating at 95% capacity, how much new funding (if any) is required