Determine the value for external funds needed

Reference no: EM1358029

Company A forecasts that sales next year will be $5,600. If I assume long-term debt remains constant, what is the value for external funds needed (EFN)? I have the financial statement in for below:

Income statement

Sales
Cost of sales
Depreciation
Interest
Tax (35%) $5,000
3,500
800
200
175
Net income
Dividends $ 325
130

Balance sheet

Current assets
Net fixed assets $ 850
3,275 Current liabilities
Long term debt
Equity $ 320
1,330
2,475
Total $4,125 $4,125

As an extension, If I assume that Company A has sufficient excess capacity to support a sales level of $5,300 with no new fixed assets, what would my EFN for projected sales of $5,600 be?

Continuing the previous problem, Company A believes that an industry slowdown is possible over the next year. In this case, sales growth will be 4%. What is the EFN?

Reference no: EM1358029

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Determine the value for external funds needed : Corporation A forecasts that sales next year will be $5,600. If I assume long-term debt remains constant, determine the value for external funds needed? I have the financial statement given below:

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