The following balance sheet/ pro forma balance sheet reflects the firm's estimates of the financial impact of the 100% revenue growth:

Caswell Publishing Co.		Caswell Publishing Co.
Balance Sheet for 2010		Pro Forma Balance Sheet for 2011	100%
Current assets	12,000,000	Current assets	24,000,000
Net fixed assets	18,230,000	Net fixed assets	36,460,000
Total	30,230,000	Total	60,460,000
Accounts payable	2,030,000	Accounts payable	4,060,000
Accrued expenses	2,010,000	Accrued expenses	4,020,000
Notes payable	1,570,000	Notes payable	1,570,000
Current liabilities	5,610,000	Current liabilities	9,650,000
Long-term debt	6,480,000	Long-term debt	6,480,000
Total liabilities	12,090,000	Total liabilities	16,130,000
Common stock (par)	1,020,000	Common stock (par)	1,020,000
Paid-in-capital	2,040,000	Paid-in-capital	2,040,000
Retained earnings	15,080,000	Retained earnings	15,080,000
Common equity	18,140,000	Common equity	18,140,000
Total	30,230,000	Projected sources of financing	34,270,000
		Discretionary financing needs
		Total financing needs=Total assets

a. How much new discretionary financing will Caswell require based on the above estimates?

b. Given the nature of the new contract and specific needs for financing that the firm expects, what recommendations might you offer to the firm's CFO as to specific sources of financing the firm should seek to fulfill its DFN from the following: Notes Payable, Retained Earnings, Sale of Fixed Assets, Long-Term Debt, Common Stock.