The Firm Currently Uses Straight Line Depreciation So That Depreciation

Short Answer

The firm currently uses straight line depreciation so that depreciation expense in 2000 will be the same as in 1999. Depreciation expense in 1999 was $5,000. Sales are expected to grow by 30% in 2000. All current assets and accounts payable are also expected to grow by 30%. All net income is paid out in dividends and no new stock issues are planned. Notes payable at the end of 1999 will be paid off in 2000. Calculate total assets and additional funds needed for 2000.