Question: balance sheet: Assets Liabilities and Equity Net Fixed Assets = $400,000 Long-term Liabilities = $150,000 Current Assets = $250,000 Current Liabilities = $100,000 Shareholder Equity

balance sheet:

Assets Liabilities and Equity

Net Fixed Assets = $400,000 Long-term Liabilities = $150,000

Current Assets = $250,000 Current Liabilities = $100,000

Shareholder Equity = $400,000

Total Assets = $650,000 Total L&E = $650,000

The expected change in retained earnings next year is $40,000.

Assume that % sales growth requires an equivalent % percent growth in net fixed assets. If sales are expected to grow by 20%, how much external financing will be needed to fully capture this sales growth? (in $)

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