A new market opportunity has opened, and you expect that you will be able to double your sales in 2019 Assume that COGS, operating expenses, current assets and current liabilities maintain the same PERCENTAGE OF SALES as in 2018 Assume no new fixed assets, nothing from 2018 was fully depreciated, and you will have the same dividend policy in 2019 as you did in 2018 Use the financial statements below to determine if additional funds will be needed, and if so, how much Income Statement 2018 2019 Sales 10000 COGS 4000 Gross Profit Operating Expenses 2000 Depreciation 250 Interest 750 Pre Tax Profit 3000 Tax at 33 33 (round to nearest $1) Net Profit Dividends 0 BalanceSheet Current Assets 25000 Fixed Assets 15000 Total Assets Current Liabilities 17000 LongTerm Debt 3000 Common Stock 7000 Retained Earnings 13000 Total Liabilities Equity (round to nearest $1) a No Additional Funds Needed b $3,333 c $65,000 d $8,000

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Question: A new market opportunity has opened, and you expect that you will be able to double your sales in 2019. Assume that COGS, operating expenses,

A new market opportunity has opened, and you expect that you will be able to double your sales in 2019. Assume that COGS, operating expenses, current assets and current liabilities maintain the same PERCENTAGE OF SALES as in 2018. Assume no new fixed assets, nothing from 2018 was fully depreciated, and you will have the same dividend policy in 2019 as you did in 2018.

Use the financial statements below to determine if additional funds will be needed, and if so, how much.

Income Statement
	2018	2019
Sales	10000
COGS	4000
Gross Profit
Operating Expenses	2000
Depreciation	250
Interest	750
Pre Tax Profit	3000
Tax at 33.33 % (round to nearest $1)
Net Profit

Dividends	0

BalanceSheet
Current Assets	25000
Fixed Assets	15000
Total Assets

Current Liabilities	17000
LongTerm Debt	3000
Common Stock	7000
Retained Earnings	13000
Total Liabilities & Equity (round to nearest $1)

a- No Additional Funds Needed

b- $3,333

c- $65,000

d- $8,000

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