What kind of financing needs does the sales company need?

Financing demand refers to the increase of operating assets, and the use of spontaneous growth of operating liabilities, available financial assets, retained earnings within the company and the amount of funds raised from the capital market through financial activities to meet the source of funds.

Total financing demand = operating net assets in the base period × internal growth rate.

External financing amount = total financing demand-available financial assets-increase in retained earnings

Estimated amount of external financing = increased operating income × percentage of sales operating assets-increased operating income × percentage of sales operating liabilities-available financial assets-estimated sales × estimated net operating interest rate ×( 1- estimated dividend payment rate)

It is generally assumed that the available financial assets are 0:

Sales growth rate of external financing = sales percentage of operating assets-sales percentage of operating liabilities -[( 1+ sales growth rate) ÷ sales growth rate ]××××( 1- expected dividend rate)