You have available the Income Statement for 2015 and the Balance Sheet as of the fiscal year end 2015 for Anthony & Co., all dollar amounts are in thousands. Note that:

-Anthonys long-term debt is being reduced at the rate of 20 per year;

-Anthonys has no plans to expand its property;

-Anthonys 2016 sales are forecast to be $5,000, and,

-Anthonys tax rate is 20%.

Income Statement
Sales	4,000
Cost of Goods Sold	3,000
Gross Profit	1,000
Operating Expenses	800
Interest Expense	40
Net Income Before Taxes	160
Provision for Taxes	32
Net Income	128
Balance Sheet
Cash	80
Accounts Receivable	400
Inventory	600
Current Assets	1,080
Property	200
Total Assets	1,280
Notes Payable, Bank	240
Accounts Payable	360
Long-term Debt, Current	20
Current Liabilities	620
Long-term Debt	160
Total Liabilities	780
Net Worth	500
Total Liabilities & Net Worth	1,280

1) Use the percent of sales approach to estimate the amount of external financing Anthony & Co. will need by year-end 2016.

2) Use the cash cycle approach to estimate the amount of external funding Anthony & Co. will need by year-end 2016.

3) Why are these estimates different?