Problem:
Following this balance sheet for 2006
Assets
Cash $15,000
Accounts Receivable 90,000
Inventory 60,000
Current Assets $165,000
Fixed Assets 60,000
Total Assets $225,000
Liabilities
Accounts Payable $90,000
Notes Payable 30,000
Accrued Expenses 7,000
Current Liabilities 127,000
Common Stock 75,000
Retained Earnings 22,500
Total Liabilities and Equity 225,000
Sales for 2005 were $300,000. Sales for 2006 have been projected to Increase by 20%. Assuming that my company is operating below capacity, calculate the amount of new funds required to finance the projected growth. My company has an 8% return on sales and 70% is paid out as dividends. I will need to prepare a Percent of Sales table.