Jordan Aluminum Supplies has the following financial statements, which are representative of the company's historical average.

Jordan is expecting a 20 percent increase in sales next year, and management is concerned about the company's need for external funds. The increase in sales is expected to be carried out without any expansion of fixed assets, but rather through more efficient asset utilization in the existing stores. Among liabilities, only current liabilities vary directly with sales.
Using the percent-of-sales method, determine whether Jordan Aluminum has external financing needs. (Hint: A profit margin and payout ratio must be found from the income statement.)

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Income Statement $300,000 Sales.. Expenses.. Earnings before interest and taxes. 247,000 $ 53,000 Interest.. 3,000 $ 50,000 20,000 $ 30,000 $ 18,000 Earnings before taxes Тахes...... Earnings after taxes. Dividends. Balance Sheet Assets Liabilities and Stockholders' Equity $ 8,000 $ 6,000 2,000 4,000 $ 12,000 Cash Accounts payable. Accrued wages.. Accrued taxes .. Accounts receivable.. 20,000 Inventory. 62,000 $ 90,000 100,000 Current assets . Current liabilities. Notes payable.. Long-term debt. Fixed assets . 10,000 20,000 Common stock.. 80,000 Retained earnings. 68,000 Total liabilities and Total assets $190,000 stockholders' equity. $190,000 .........