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1.Financial forecasting percent of sales Tulley Appliances, Inc. projects next year's sales to be $20...

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1.Financial forecasting percent of sales Tulley Appliances, Inc. projects next year's sales to be $20 million. Current sales are at $ 15 million, based on current assets of $5 million and fixed assets of $5 million. The firm's net profit margin is 5 percent after taxes. Tulley forecasts that current assets will rise in direct proportion to the increase in sales, but fixed assets will increase by only $100,000. Currently, Tulley has $1.5 million in accounts payable (which vary directly with sales), $2 million in long-term debt (due in 10 years), and common equity (including $4 million in retained earnings) totaling $6.5 million. Tulley plans to pay $500,000 in common stock dividends next year. a. What are Tulley's total financing needs (that is, total assets) for the coming year? [3.5 marks] b. Given the firm's projections and dividend payment plans, what are its discretionary financing needs? [ 4 Marks]

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