Calculation of additional funds neededthe following is the

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Calculation of additional funds needed.

The following is the balance sheet for 2003 for Marbell Inc.

 

Marbell Inc.

 

 

Balance Sheet

 

 

12/31/2003

 

Assets

 

Liabilities and Stockholders' Equity

 

Cash

$15,000

Accts. Payable

$90,000

Accts. Rec.

90,000

Notes payable (non-spontaneous)

30,000

Inventory

60,000

Accrued expenses

7,500

Current Assets

165,000

Current Liabilities

127,500

Fixed assets (non-spontaneous)

60,000

Common stock

75,000

 

 

Retained earnings

22,500

Total assets

$225,000

Total Liabilities + S. E. Equity

$225,000

Sales for 2002 were $300,000. Sales for 2003 have been projected to increase by 20%. Assuming that Marbell Inc. is operating below capacity, calculate the amount of new funds required to finance this growth. Marbell has an 8% return on sales and 70% is paid out as dividends.

Reference no: EM13357008

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