(percent of sales forecasting) last year, sales for sports enterprise corporation (sec) were 12,000,000. Several balance sheet items vary directly with sales increases, as follows:

Cash = 3%, accounts payable by 10%, inventory by 15%, fixed assets by 25% and other accruals by 5%, accounts receivable by 20%.

The net profile margin for is 6%, and the firm pays out an annual dividend equal to 25% of net income. The latest balance sheet is

Assets                                                                                           Liabilities and owners equity

Cash                            360,000                                                                      Accounts payable 1,200,000

Accounts receivable 2,400,000                                                                  Accruals                   600,000

Inventory                    1,800,000                                                                   Short term loan        800,000

Total current assets 4,560,000                                                             Total current liabilities 2,600,000

Net fixed assets         3,000,000                                                             Long term debt             1,000,000                                                         

Total assets                 7,560,000                                                             Stockholders equity      3,960,000

                                                                                                                Total liabilities and equity   7,560,000

A) If sales increase by 25% to 15,000,000 next year, what additional financing is needed?

B) Assume that the additional financing needed is acquired by increasing the short term loan. Create a projected balance sheet for next year for SEC.