QUESTION 3:

A. JSN Enterprise is evaluating its financing requirements for the coming year. The firm has only been in business for 1 year, but its CFO predicts that the firm's operating expenses, current assets, net fixed assets, and current liabilities will remain at their current proportion of sales. Last year JSN had $14 million in sales with net income of $1.4 million. The firm anticipates that next year's sales will reach $15 million with net income rising to $2 million. Given its present high rate of growth, the firm retains all its earnings to help defray the cost of new investments. The firm's balance sheet for the year just ended is found below: JSN Enterprises, Inc.

Balance Sheet
12/31/2001	% of Sales
Current assets	$4,000,000	25%
Net fixed assets	6,000,000	50%
Total	$10,000,000
Liabilities and Owners' Equity
Accounts payable	$4,000,000	25%
Long-term debt	1,000,000	NA
Total liabilities	$5,000,000
Common stock	2,000,000	NA
Paid-in capital	1,900,000	NA
Retained earnings	1,100,000
Common equity	5,000,000
Total	$10,000,000

Estimate JSNs total financing requirements (i.e., total assets) for 2002 and its net funding requirements (DFN).

B. Brief an overview of financial planning and its types.