external funds required

External Funds Required

Change in AssetsEFT =

External Funds Required

Change in Assets – Change in Current Liabilities

EFT =

External Funds Required

Change in Assets – Change in Current Liabilities

– Profits RetainedEFT =

External Funds Required

Change in Assets – Change in Current Liabilities

– Profits RetainedEFT =

CA= + PA

External Funds Required

Change in Assets – Change in Current Liabilities

– Profits RetainedEFT =

CA – CL= + PA

External Funds Required

Change in Assets – Change in Current Liabilities

– Profits RetainedEFT =

CA – CL – Profits1= + PA * RR

External Funds Required

Change in Assets – Change in Current Liabilities

– Profits RetainedEFT =

CA – CL – Profits1

S1 - S0

S0

CA0

=

=

+ PA * RR

( )

External Funds Required

Change in Assets – Change in Current Liabilities

– Profits RetainedEFT =

CA – CL – Profits1

S1 - S0

S0

CA0 + PA

=

=

+ PA * RR

( )

External Funds Required

Change in Assets – Change in Current Liabilities

– Profits RetainedEFT =

CA – CL – Profits1

S1 - S0

S0

CA0 + PA

=

=

+ PA * RR

S1 - S0

S0

CL0( ) ( )

External Funds Required

Change in Assets – Change in Current Liabilities

– Profits RetainedEFT =

CA – CL – Profits1

S1 - S0

S0

CA0 + PA

=

=

+ PA * RR

S1 - S0

S0

CL0( ) ( ) – S1 (pm0) (RR)

External Funds Required

Change in Assets – Change in Current Liabilities

– Profits RetainedEFT =

CA – CL – Profits1

– S1 (pm0) (RR) S1 - S0

S0

CA0 + PA

=

=

+ PA * RRS1 - S0

S0( ) ( )

External Funds RequiredExample

CL0

Change in Assets – Change in Current Liabilities

– Profits RetainedEFT =

CA – CL – Profits1

– S1 (pm0) (RR) S1 - S0

S0

CA0 + PA

=

=

+ PA * RRS1 - S0

S0( ) ( )

External Funds RequiredExample

1,000 - 580

580* 196=( )

CL0

Change in Assets – Change in Current Liabilities

– Profits RetainedEFT =

CA – CL – Profits1

– S1 (pm0) (RR) S1 - S0

S0

CA0 + PA

=

=

+ PA * RRS1 - S0

S0( ) ( )

External Funds RequiredExample

1,000 - 580

580* 196=( ) +250

CL0

Change in Assets – Change in Current Liabilities

– Profits RetainedEFT =

CA – CL – Profits1

– S1 (pm0) (RR) S1 - S0

S0

CA0 + PA

=

=

+ PA * RRS1 - S0

S0( ) ( )

External Funds RequiredExample

1,000 - 580

580* 196=( ) +250 -

1,000 - 580

580* 97( )

CL0

Change in Assets – Change in Current Liabilities

– Profits RetainedEFT =

CA – CL – Profits1

– S1 (pm0) (RR) S1 - S0

S0

CA0 + PA

=

=

+ PA * RRS1 - S0

S0( ) ( )

External Funds RequiredExample

1,000 - 580

580* 196=( ) +250 -

1,000 - 580

580* 97( ) – 1,000

64

58040%

CL0

Change in Assets – Change in Current Liabilities

– Profits RetainedEFT =

CA – CL – Profits1

– S1 (pm0) (RR) S1 - S0

S0

CA0 + PA

=

=

+ PA * RRS1 - S0

S0( ) ( )

External Funds RequiredExample

1,000 - 580

580* 196=( ) +250 -

1,000 - 580

580* 97( ) – 1,000

64

58040%

.72 * 196=( )

CL0

Change in Assets – Change in Current Liabilities

– Profits RetainedEFT =

CA – CL – Profits1

– S1 (pm0) (RR) S1 - S0

S0

CA0 + PA

=

=

+ PA * RRS1 - S0

S0( ) ( )

External Funds RequiredExample

1,000 - 580

580* 196=( ) +250 -

1,000 - 580

580* 97( ) – 1,000

64

58040%

.72 * 196 +250=( )

CL0

Change in Assets – Change in Current Liabilities

– Profits RetainedEFT =

CA – CL – Profits1

– S1 (pm0) (RR) S1 - S0

S0

CA0 + PA

=

=

+ PA * RRS1 - S0

S0( ) ( )

External Funds RequiredExample

1,000 - 580

580* 196=( ) +250 -

1,000 - 580

580* 97( ) – 1,000

64

58040%

.72 * 196 +250=( ) - .72 * 97

CL0

Change in Assets – Change in Current Liabilities

– Profits RetainedEFT =

CA – CL – Profits1

– S1 (pm0) (RR) S1 - S0

S0

CA0 + PA

=

=

+ PA * RRS1 - S0

S0( ) ( )

External Funds RequiredExample

1,000 - 580

580* 196=( ) +250 -

1,000 - 580

580* 97( ) – 1,000

64

58040%

.72 * 196 +250=( ) - .72 * 97 - 1,000 * .11 * .4

CL0

Change in Assets – Change in Current Liabilities

– Profits RetainedEFT =

CA – CL – Profits1

– S1 (pm0) (RR) S1 - S0

S0

CA0 + PA

=

=

+ PA * RRS1 - S0

S0( ) ( )

External Funds RequiredExample

1,000 - 580

580* 196=( ) +250 -

1,000 - 580

580* 97( ) – 1,000

64

58040%

.72 * 196 +250=( ) - .72 * 97 - 1,000 * .11 * .4

= 391.12

CL0

Change in Assets – Change in Current Liabilities

– Profits RetainedEFT =

CA – CL – Profits1

– S1 (pm0) (RR) S1 - S0

S0

CA0 + PA

=

=

+ PA * RRS1 - S0

S0( ) ( )

External Funds RequiredExample

1,000 - 580

580* 196=( ) +250 -

1,000 - 580

580* 97( ) – 1,000

64

58040%

.72 * 196 +250=( ) - .72 * 97 - 1,000 * .11 * .4

= 391.12 - 70.24

CL0

Change in Assets – Change in Current Liabilities

– Profits RetainedEFT =

CA – CL – Profits1

– S1 (pm0) (RR) S1 - S0

S0

CA0 + PA

=

=

+ PA * RRS1 - S0

S0( ) ( )

External Funds RequiredExample

1,000 - 580

580* 196=( ) +250 -

1,000 - 580

580* 97( ) – 1,000

64

58040%

.72 * 196 +250=( ) - .72 * 97 - 1,000 * .11 * .4

= 391.12 - 70.24 - 44

CL0

Change in Assets – Change in Current Liabilities

– Profits RetainedEFT =

CA – CL – Profits1

– S1 (pm0) (RR) S1 - S0

S0

CA0 + PA

=

=

+ PA * RRS1 - S0

S0( ) ( )

External Funds RequiredExample

1,000 - 580

580* 196=( ) +250 -

1,000 - 580

580* 97( ) – 1,000

64

58040%

.72 * 196 +250=( ) - .72 * 97 - 1,000 * .11 * .4

= 391.12 - 70.24 - 44

= $ 277 Thousand

CL0