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Builtrite projects that its sales next year will be $4 million and expects to earn...

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Finance

Builtrite projects that its sales next year will be $4 million and expects to earn a net
profit after taxes of 5%. Builtrite is in the process of projecting its financing needs for the
coming year and has come up with the following projections:
a) current assets will equal 20% of sales and fixed assets will remain at the current level
of $1 million
b) common equity is currently $800,000 and Builtrite expects to pay out half of its NPAT
in dividends
c) Builtrite has accounts payable equal to 10% of sales and no long term debt
outstanding
What are Builtrite's financing needs (discretionary financing needs) for the coming vear?

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