EFN Calculator: Introduction

The EFN Calculator determines the External Financing Needed under the assumptions underlying the Percentage of Sales Method.

1. Sales (S₀) Field - The current Sales level.
2. Net Income Field - The current Net Income.
3. Addition to RE Field - The current Addition to Retained Earnings from the Income Statement.
4. Current Assets Field - The current Total Current Assets.
5. Net Fixed Assets Field - The current Net Fixed Assets.
6. L^*₀ Field - The Liabilities in the current year which vary directly with Sales, e.g., Accounts Payable.
7. Sales Growth Field - The forecasted growth rate in Sales.
8. % of Capacity Field - The percentage of capacity at which the Fixed Assets are currently being utlized.
9. Buttons - Press these buttons to calculate the corresponding value.
   • Calculate Button - Press to calculate the External Financing Needed.
   • Clear Button - Press to clear the calculator.

Now you are ready to use the EFN Calculator.