C
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Tobin Supplies Company expects sales next year to be $460,000. Inventory and accounts
receivable will increase $95,000 to accommodate this sales level. The company has a steady
profit margin of 15 percent with a 30 percent dividend payout.
How much external financing will Tobin Supplies Company have to seek? Assume there is no-
increase in liabilities other than that which will occur with the external financing.