See attached file for data.
The Manning Company has financial statements as shown (attached) which are representative of the company's historical average.
The firm is expecting a 20 percent increase in sales next year and management is concerned about the company's need for external funds. The increase in sales is expected to be carried out without any expansion of fixed assets, but rather through more efficient asset utilization in the existing store. Among liabilities, only current liabilities vary directly with sales.© BrainMass Inc. brainmass.com December 15, 2020, 5:59 pm ad1c9bdddf
External financing needed = Increase in assets - increase in spontaneous liabilities - increase in retained ...
The solution explains how to calculate the amount of external financing needed using the percent of sales method