2. Given the compressed version of balance sheet and income statement; estimate the amount of external

Introduction to Finance Week 5 – Numerical Exercises

2. Given the compressed version of balance sheet and income statement; estimate the amount of external financing needed to increase sales by 20% next year. (use percentage of sales method)

(Dividend payout is 50%)

Balance Sheet (End of the Year)

Assets $2,000

Debt $1000

Equity $1000

Total $2000 $2000

Income Statement

Sales $1000

Costs 800

Net Income 200 SOLUTION