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Spring Company reported sales of $127,650 in 2022 and earnings after tax of $19,148 . Its December 31st, 2022, condensed balance sheet is presented below:
Current assets	90,000		Current liabilities	55,000
Plant and equipment, net	100,000		Long-term liabilities	35,000
			Common shares	40,000
			Retained earnings	60,000
Total assets	190,000		Total liabilities and equity	190,000
The company always maintains a dividend payout ratio of 40%. Based on predicted economic conditions it expects next years sales volume to increase by 13.0% and its profit margin to remain the same as in 2022.

A. Use the "Percentage of sales" method to determining the external financing required assuming the company has sufficient plant capacity

to handle the increase in sales volume

Increase In RE=

RNF=

B. Assume that company do not have excess capacity and would require a similar percentage increase in net plant and equipment to accomodate the net increase in volume. Calculate external financing required.

RNF=

C.

C. Assume instead that the company does not have excess capacity and would require a $10,000 increase in net plant and equipment to accommodate the volume increase. Compute the external financing required. RNF=

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