Business Finance Online

External Financing Needed Exercise

Find the External Financing Needed (EFN) given the Balance Sheet, Income Statement, Forecasted Sales Growth Rate, and Percentage of Capacity provided below.

Balance Sheet ($ in Millions)
Assets 1998 Liabilities and Owners' Equity 1998
Current Assets   Current Liabilities  
Cash Accounts Payable
Accounts Receivable Notes Payable
Inventory Total Current Liabilities
Total Current Assets Long-Term Liabilities  
    Long-Term Debt
Fixed Assets   Total Long-Term Liabilities
Net Fixed Assests Owners' Equity  
    Common Stock
    Retained Earnings
    Total Owners' Equity
Total Assets Total Liab. and Owners' Equity
Income Statement
($ in Millions)
  1998
Sales
Costs
Taxable Income
Taxes
Net Income
Dividends
Addition to RE
Other Information
Forecasted Growth Rate in Sales %
% of Capacity %


EFN Calculator
Sales (S0): $ Current Assets: $ Sales Growth:  %
Net Income: $ Net Fixed Assets: $ % of Capacity:  %
Addition to RE: $ Liabilities (L*0): $    

Sales Forecast (S1): $ Full Cap. Sales (SFC): $ EFN: $
  

 

© 2002 - 2010 by Mark A. Lane, Ph.D.