Instruction

Consider the following input data and find out Additional fund needed for your institution on 2018 and 2019. Give your advice where to plug in the additional fund needed

1. Sales growth of the company is 10%
2. Depreciation is 8% annually
3. The 2017 dividend per share is $1.15, and this dividend is expected to increase by about 8%
4. There are 50 million shares outstanding
5. Rate of interest on notes payable 8%
6. Rate of interest on bond 10%

Income statement

2017

• Sales $4000
• Cost except depreciation 3616
• Depreciation 200
• Total operating costs 3716
• Interest 98
• Dividends to preferred stocks 5

Balance sheet

2017

• Cash and marketable securities $20
• Account receivable 475
• Inventories715
• Net plant and equipment 2000
• Account payable70
• Notes payable210
• Accruals 240
• Long term bonds 854
• Preferred stock50
• Common stock230
• Retained earnings 866