Determine External Funding Requirement for 2016?

Income Statement (2015)

Revenue 900,000

Costs 600,000

Depreciation160,000

Interest rate = 8%

Tax rate = 40%

Cash taxes = Financial taxes

Cost growth = 15%

Revenue growth = 20%

Constant A/P to Cost ratio

Balance Sheet (12/31/2015)

Cash 150,000

A/R 200,000

Net Fixed Assets 800,000

A/P 100,000

Debt 500,000

Capital Spending = 400,000

Debt due = 200,000

Constant A/R to Sales ratio

Depreciation period = 5 yrs