Chapter 3, Problem 21QP

Calculating EFN The most recent financial statements for Moose Tours, Inc., appear below. Sales for 2016 are projected to grow by 20 percent. Interest expense will remain constant; the tax rate and the dividend payout rate will also remain constant. Costs, other expenses, current assets, fixed assets, and accounts payable increase spontaneously with sales. If the firm is operating at full capacity and no new debt or equity is issued, what external financing is needed to support the 20 percent growth rate in sales?

MOOSE TOURS, INC. 2015 Income Statement
Sales	$752,500
Costs	585,600
Other expenses	15,400
Earnings before interest and taxes	$151,500
Interest expense	11,340
Taxable income	$140,160
Taxes	49,056
Net income	$91,104
Dividends	$27,331
Addition to retained earnings	63,773