Harrison Electronics, Inc., operates a chain of electrical lighting and fixture distribution centers throughout northern Arizona. The firm is anticipating expansion of its sales in the coming year as a result of recent population growth trends. The firm's financial analyst has prepared pro forma balance sheets that reflect three different rates of growth in firm sales for the coming year and the corresponding nondiscretionary sources of financing the firm expects to have available, as follows:
Harrison Electronics, Inc.
Pro Forma Balance Sheet, 2017

a. What are the firm's discretionary financing needs under each of the three growth scenarios?
b. What potential sources of financing are there for Harrison to fulfill its needs for discretionary financing?

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Alternative Growth Rates Calculation 20% $13,200,000 $14,400,000 $16,800,000 19,800,000 21,600,000 25,200,000 $33,000,000 $36,000,000 $42,000,000 10% 40% Current assets Net fixed assets Total assets Liabilities and owners equity Accounts payable Accrued expenses Notes payable $ 2,200,000 2,400,000 2,800,000 2,200,000 2,400,000 2,800,000 1,500,000 $ 5,900,000 6,300,000 7,100,000 No change 1,500,000 1,500,000 Total current liabilities No change 6,500,000 6,500,000 6,500,000 $12,400,000 $12,800,000 $13,600,000 Common stock (par) No change 1,000,000 1,000,000 1,000,000 No change 2,000,000 2,000,000 ,000,000 15.550,000 15.600,000 15,700,000 $18.550,000 $18.600,000 $18.700,000 $30,950,000 $31,400,000 $32,300,000 Long-term debt Total liabilities Paid-in capital Retained eamings Total common equity Projected sources of financing Discretionary financing needs Total financing needs - Tota l assets