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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)
Taxable Income
Net Income
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: $


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