Exercise 5.SOCKS SA is evaluating its financial requirements for the coming year based on iti balance sheet from 2019:

Balance sheet % of sales

Current assets EUR 5,000,000 25%

Net fixed assets EUR 10,000,000 50%

Liability and equity

Accounts payable EUR 4,000,000 20%

Long-term debt EUR 3,000,000

Total liabilities EUR 7,000,000

Common stock EUR 1,000,000

Paid-in capital EUR 1,500,000

Retained earnings EUR 900,000

Common equity EUR 3,400,000

Total EUR 13,800,000

Estimate RIBOTs financing requirements (total assets) for 2020 and its discretionary financing needs, considering that sales are expecting to grow by 5% in 2020.

So far the company has generated the following revenues in 2020:

January EUR 3,670,000

February EUR 4,150,000

March EUR 2,900,000

April (projected) EUR 2,750,000