Question: Suppose that the 2013 actual and 2014 projected financial statements
Suppose that the 2013 actual and 2014 projected financial statements for Comfy Corners Catbeds are initially shown as follows. In these tables, sales are projected to rise by 22 percent in the coming year, and the components of the income statement and balance sheet that are expected to increase at the same 22 percent rate as sales are indicated by green type. Assuming that Comfy Corners Catbeds wants to cover the AFN with half equity, 25 percent long-term debt, and the remainder from notes payable, what amount of additional funds will be needed if debt carries a 10 percent interest rate?
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