Beta Corporation is expected to increase sales from $97MM to $100 MM. Total assets today are $300MM.
Assuming that Beta Corporation is already at full capacity, it will need to grow its assets at the same rate as its projected sales. Current liabilities were $25MM consisting of $5MM of notes payable, $10MM of accounts payable, and $10MM of accruals.
After tax profit margin is forecasted to be 5.67%, with a retention ratio of 45%.
Calculate the External Funds needed by Beta Corporation.