Question
Urbans, which is currently not operating at full capacity, has sales of $47,000, current assets of $5,100, current liabilities of $6,200, net fixed assets of
Urbans, which is currently not operating at full capacity, has sales of $47,000, current assets of $5,100, current liabilities of $6,200, net fixed assets of $51,500, and a 5 percent profit margin. The firm has no long-term debt and does not plan on acquiring any. No new equity will be issued. The firm does not pay any dividends. Sales are expected to increase by 3 percent next year. The following items vary directly with sales current assets and short-term liabilities. The profit margin percentage remains constant.
How much is the external financing needed (EFN) to balance the projected Balance Sheet for next year?
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