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This is a book study question to be used as a guide for other homework questions...I am only looking for the external funding requirement and

This is a book study question to be used as a guide for other homework questions...I am only looking for the external funding requirement and how to find it please

Pioneer Technologies is a manufacturer of medical equipment. The Year 1 financialstatements for the firm are shown below:

Balance Sheet as of December 31, Year 1(thousands of dollars)

Cash$100,000 Accounts payable $170,000

Receivables$190,000 Notes payable $78,000

Inventories$360,000 Accruals$110,000

Total current assets $650,000 Total current liabilities $358,000

Net fixed assets $710,000 Common stock $900,000

Retained earnings $102,000

Total assets$1,360,000 Total liabilities & equity$1,360,000

Income Statement for Year 1(thousands of dollars)

Sales$2,100,000

Operating costs$1,824,000

Earnings before interest and taxes $276,000

Interest$10,140

Earnings before taxes$265,860

Taxes (40%)$106,344

Net income$159,516

Dividends (60%)$95,710

Addition to retained earnings $63,806

Suppose that in Year 2, sales increase by 10 percent over Year 1 sales. Construct the pro forma financial statements using the constant growth method. Assume the firm operated at full capacityin Year 1.

I am having trouble figuring out the external funding requirement.

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