These are your financial statements for the year ending today.

BALANCE SHEET

Cash $180,000 Accounts Payable $ 360,000

Receivables 360,000 Accruals 180,000

Inventories 720,000 Notes Payable 156,000

Total Current Assets $1,260,000 Total Current Liabilities $ 696,000

Net Fixed Assets 1,440,000 Common Stock 1,800,000

Retained Earnings 204,000

Total Assets $2,700,000 Total Liabilities and Equity $2,700,000

INCOME STATEMENT

Sales $3,600,000

Less: Operating Costs 3,279,720

EBIT $ 320,280

Less: Interest 18,280

EBT $ 302,000

Less: Taxes (40%) 120,800

Net Income $ 181,200

Less: Dividends 108,000

Additions to Retained Earnings $ 73,200

You expect sales to increase 20% next year. Assume you are currently operating at 90% capacity, interest expense will be 13% of any interest-bearing debt balance at the beginning of the year, and dividends will grow by 3%. Using a pro forma income statement to estimate the additions to retained earnings, how much external funds do you project needing to support the 20% sales growth? Please explain how you arrived at your answer, any assumptions you made and what you perceive to be any limitations of your answer.