The Hudson River Line Company has a balance sheet for the year as below: 

Cash $5,000 

Ac Rec 20,000

 Inventories 40,000 

Total Current Assets $65,000

 Fixed Assets 50,000 and

 Total Assets $115,000.

Accounts pay $15,000 notes payable 10,000 long-term debt 30,000 equity 60,000 and total liabilities and equity $115,000. Last year the firm had sales of $148,750. This year, the company expects sales to increase 25 percent to generate an after-tax profit of $16,000 and pay a dividend of $5,000. 

What additional financing will be needed to support increased sales?

Answer rating: 100% (QA)

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