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