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1. Calculate additional funds needed.
Make the assumptions given below (and in the corresponding mp4s).
		NS0 =	$1,600,000.00
NI0 =	$160,000.00
Current assets =	$520,000.00
fixed assets =	$480,000.00
accounts payable =	$48,000.00
accrued liabilities =	$32,000.00
g =	35%
retention rate	100%
forcasted sales NS1 =	$2,160,000.00
delta_net_sales =	$560,000.00
total assets =	$1,000,000.00
Required Increase in Assets	$350,000.00
-Spontaneously Generated Funds	-$28,000.00
-increase in retained earnings	-$216,000.00
AFN =	$106,000.00
Assumptions:
1. Total assets is proportional to sales.
For A/R, this is often a good assumption.
For fixed assets, sometimes this is not a good assumption.
This is more of a problem with either high excess capacity or no excess capacity in a factory.
2. ST liabilities are proportional to sales.
This is often a good assumption for items related to materials, etc.
		For accounts linked to LT assets, it might not be as good an assumption.
3. Increase in retained earnings is proportional to sales.
Also, assuming that net income is proportional to sales.
NI won't be proportional to sales if there are high fixed costs.
In addition, cash dividends aren't usually a fixed % of net income.

2. Calculate additional funds needed based on the assumption that the firm has sufficient excess capacity in their fixed assets for any expansion in the coming year. You may still assume that current assets are proportional to sales.
		Make all other assumptions as in problem #1.
		NS0 =	$1,600,000.00
		NI0 =	$160,000.00
Current assets =	$520,000.00
fixed assets =	$480,000.00
accounts payable =	$48,000.00
accrued liabilities =	$32,000.00
g =	35%
retention rate	100%
forcasted sales NS1 =	$2,160,000.00
delta_net_sales =	$560,000.00
total assets =	$1,000,000.00
Required increase in assets	$350,000.00
-Spontaneously Generated funds	-$28,000.00
Increase in Retained Earnings	-$216,000.00
AFN =	$106,000.00

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