Statement of Comprehensive Income
For the year ended December 31, 2022
 Sales $ 350,000
Costs 250,000
Earnings before taxes 100,000
Income taxes (40%) 40,000
Net income $ 60,000

Statement of Financial Position
For December 31, 2022
Cash $ 60,000
Accounts receivable 50,000
Inventory 100,000
Net fixed assets 290,000
Total assets $ 500,000

Current liabilities $ 100,000
Long-term debt 125,000
Common shares 75,000
Retained earnings 200,000
Total liabilities and equity $ 500,000

Costs, assets, and current liabilities are proportional to sales, while long-term debt and common shares will remain the same. Sales are projected to increase by 15% in 2023, while retention ratio will be 60%. 

Calculate the amount of external financing needed (EFN) for 2023. Show your work

Answer rating: 100% (QA)

To calculate the External Financing Needed EFN you can use the fo... View the full answer