Crum Co’s balance sheet and income statement for 2001 are given below. The firm expects sales to grow by 50% in 2002. Operating costs, spontaneous liabilities and assets will increase in proportion to sales. The company plans to finance any additional funds needed using debt at an interest rate of 10%. What is the company’s projected funds needed for 2002? Assume interest expenses are 10% of the beginning year of debt balance. 2001 2002 – 1st pass 2002 – 2nd pass Sales $1,000 Operating costs 800 EBIT 200 Interest 16 EBT 184 Taxes (40%) 73.6 Net Income 110.40 Dividends (60%) 66.24 Addn. To RE 44.16 Cash 30 A/R 150 Inventories 200 Total CA 380 Gross FA 700 Accum. Depreciation 80 Net FA 620 Total assets 1000 A/P and accruals 150 Debt 200 Common stock 150 Retained Earnings 500 Total Liab. & Equity 1000