BECKER ENTERPRISES
PARTIAL INCOME STATEMENT (Current year)
Sales	$ 1,500
Net Income	$ 315
(Note: Profit margin = NI/SALES)
Dividends	$ 94.50
COMPUTATION OF DIVIDEND PAYOUT %
	Dividends paid
	DIVIDED BY net income
	=dividend payout % (d)
NEXT YEAR INCOME PROJECTION:
	Next year's sales
	X profit percentage
	= next year net income
	x dividend retention ratio
	=addition to retained earnings

Becker Enterprises has asked you to determine how much external funding would be necessary next year under the
following assumptions: (1) current year sales will increase by 15%; (2) the dividend payout ratio and profit margin will
remain constant; (4) the firm is at full capacity, and (4) the spontaneous assets and liabilities must grow at the same rate as sales.

REQUIRED: (#1) Use the balance sheet forecasting template below to determine the external funds needed for next year.
(#2) Then complete the formula method below the balance sheet to check the accuracy of your Balance Sheet solution

BECKER ENTERPRISES
BALANCE SHEET (Current year)			next year
ASSETS	This year	Sales growth	projected
Cash	$ 15
ST Investments	$ 10
Accounts receivable	$ 40
Inventories	$ 35
TOTAL CURRENT ASSETS	$ 100
Net Fixed Assets	$ 1,200
TOTAL ASSETS	$ 1,300
LIABILITIES & EQUITY
Accounts Payable	$ 20
Accruals	$ 30
Notes Payable	$ 20
TOTAL CURRENT LIABILITIES	$ 70
Long Term Bonds	$ 300
TOTAL LIABILITIES	$ 370
Common Stock	$ 500
Retained Earnings	$ 430
TOTAL EQUITY	$ 930
TOTAL LIABILITIES & EQUITY	$ 1,300
			answer:
amount needed to balance (additional funds needed) =