Sherman, IncorporatedBalance Sheet (in dollars) for the Year Ending December 31, 2017Cash350 Notes

payable200Accounts receivable450 Accounts payable400 Inventory900Accruals600Current assets1,700 Current portion LD debt800Net fixed assets7,300Current liabilities2,000Total assets9,000 LT Debt3,000Common stock ($2.00 par value)450Additional paid in capital1,650Retained earnings1,900Total liabilities & equity9,00017.Sales for Sheman, Inc. in 2017were $70,000. The projected growth rate in sales for 2018is 30 percent and the project net profit margin for 2018is 5percent. If all assets and all spontaneous liabilities (i.e., accounts payable and accruals) grow as a percent of sales and if Sherman plans to pay out 75percent of all net income as dividends in 2018, compute Sherman’s additional (or, outside) funds needed for 2018. 18.Sales for 2017were $45,000. The 2018projected net profit margin is 2.5%. Sherman plans to pay a total dividend of $700 in 2018. Assuming that all current assets and all current liabilities except for current portion of LT debt grow as a percent of sales,that net fixed assets grow at 60 percent of the growth rate in sales and that 200 additional shares of stock will be sold by Sherman in 2018for $3.00per share, compute Sherman’s additional (or, outside) funds needed for 2018. Assumingthat the projectedgrowth rate in sales in 2018is 40 percent, compute Sherman’s additional (or, outside) funds need for 2018

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