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These are your financial statements for the year ending today. BALANCE SHEET Cash Receivables Inventories Total Current Assets Net Fixed Assets $180,000 360,000 720,000 $1,260,000

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These are your financial statements for the year ending today. BALANCE SHEET Cash Receivables Inventories Total Current Assets Net Fixed Assets $180,000 360,000 720,000 $1,260,000 1,440,000 Accounts Payable Accruals Notes Payable Total Current Liabilities Common Stock Retained Earnings Total Liabilities and Equity $360,000 180,000 156,000 $ 696,000 1,800,000 204,000 $2,700.000 Total Assets $2.700,000 INCOME STATEMENT Sales Less: Operating costs EBIT Less: Interest EBT Less: Taxes (40%) Net Income Less: Dividends Additions to Retained Earnings $3,600,000 3,279,720 $ 320,280 18,280 $ 302,000 120,800 $ 181,200 108,000 $ 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

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