Referring to the IAFT financial statements, using the percen…
Referring to the IAFT financial statements, using the percentage of sales method, what is the external financing needed if sales are projected to increase by 20%? Assets (other than net fixed assets), costs (other than depreciation), and current liabilities are proportional to sales. Long Term Debt and equity are not. The tax rate will also remain the same. Suppose the Island Angler Fishing Team needed an immediate increase in Net Fixed Assets by $2,000. Given this, what is the external financing needed?