the interest rate on all debt is 13%,
and cash earns no interest income assume that all addition debt in the form of a line of credit is added at the end of the year, which means that you should base the forecasted interest expense on the balance of debt at the beginning of the year.
Use the forecasted income statement to determine the addition to retained earnings.
assume that the company was operating at full capacity in 2013, that it cannot sell off any of its fixed assets, and that any required financing will be borrowed as notes payable.
also, assume that assets, spontaneous liabilities , and operating costs are expected to increase by the same percentage as sales. determine the additional funds needed.