Given the following information: current assets = $400, fixed assets = $500, accounts payable = $100, notes payable = $45, long-term debt = $455, equity = $300, sales = $450, costs = $400, tax rate = 34%. suppose that current assets, costs, and accounts payable maintain a constant ratio to sales.
If the firm is producing 80% capacity, what is the total external financing needed if sales increase 25%? assume the firm pays no dividends. (using a calculator)