Calculating Additional Finance Requirements.
The CFO of IPOD Accessories, Inc. has asked for your help in estimating the firm's additional financing needed for next year. The CFO has provided the following information to help you with your task:
a) Sales are forecasted to increase by $450,000
b) Total assets will increase by 80% of increase in sales
c) Current liabilities will increase by 30% of increase in sales
d) Net income is projected to equal $125,000
e) Projected dividend payments will equal $35,000