1. The management of Glenview Ltd. is preparing its budget for next year.Marketing expects sales to grow by 20% to $3.5 million. The company is operating at full capacity, and net assets are expected to grow proportionally with sales. Glenview's profit margin has been stable at 8.2%. The company's dividend policy is to payout 25% of profits to shareholders.

Glenview's Balance Sheet

Cash	175,000	Accounts Payable	262,000
Accounts Receivable	350,000	Notes Payable	113,000
Inventories	350,000	Accruals	150,000
Fixed Assets	875,000	Long term debt	700,000
		Total Liabilities	1,225,000
		Common Equity	88,000
		Retained Earnings	437,000
		Total Equity	525,000
TOTAL ASSETS	1,750,000	Total Liabilities & Equity	1,750,000

1. How much does Glenview need to borrow to support this forecasted sales growth?Show all work and explain your answer. (10 marks)