Meltzer electronics estimates that its total financing needs for the coming year will be $34.5 million. During the coming fiscal year, the firm's required financing payments on its debit and equity financing will total $12.9 million. The firm's financial manager estimates that operating cash flows for the coming year will total $33.7 million and that the following changes will occur in the accounts noted.
Accounts forecast change
Gross fixed assets $8.9 million
Change in current assets +2.3 million
Changes in accounts payable +1.3 million
Changes in accrued liabilities +0.8 million
How much of the free cash flow will the firm have available as a source of new internal financing in the coming year?
How much external financing will Meltzer require during the coming year to meet its total forecast financing needs?