Zapatera Enterprises is evaluating its financing requirements for the coming year. The firm has been in business for only 1 year, but its CFO predicts that the firm€™s operating expenses, current assets, net fixed assets, and current liabilities will remain at their current proportion of sales. Last year Zapatera had $ 12 million in sales, and net income of $ 1.2 million. The firm anticipates that next year€™s sales will reach $ 15 million, with net income rising to $ 2 million. Given its present high rate of growth, the firm retains all its earnings to help defray the cost of new investments. The firm€™s balance sheet for 2013 is found below:

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Zapatera Enterprises Inc. BALANCE SHEET 12/31/2013 % OF SALES Current assets $3,000,000 25% Net fixed assets 50% 6,000,000 $9,000,000 Total LIABILITIES AND OWNERS' EQUITY Accounts payable $3,000,000 25% Long-term debt 2,000,000 NA Total llabilities $5,000,000seSmari Common stock 1,000,000 NA Pald-in capital 1,800,000 NA Retained earnings 1,200,000 Common equlty 4,000,000 Total $9,000,000