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  1. business
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  3. you have a business that just ended its fourth yea

You have a business that just ended its fourth year. The fourth year income statement...

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Accounting

You have a business that just ended its fourth year. The fourth year income statement and ending balance sheet are as follows: Revenue $1,000,000 COGS 500,000 Gross profit 500,000 Other variable expenses 100,000 Depreciation 25,000 Other fixed expenses 300,000 Net profit 75,000 Cash 50,000 A/P 25,000 A/R 100,000 Other short term debt 100,000 Inventory 125,000 Long term debt 75,000 Capital assets 125,000 Equity 200,000 You believe that revenues will grow by 20% next year. How much additional funding will you need to support this revenue growth, regardless of source?

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