Based on Ms. Colby’s sales growth forecast, how much does Charming Florist need in external funds for the upcoming fiscal year?

Based on Ms. Colby’s sales growth forecast for Charming Florist, the company will need an estimated $25,000 in external funds for the upcoming fiscal year. This figure was calculated by estimating how much additional working capital will be needed to support the projected sales growth. To arrive at this number, Ms. Colby considered several factors such as expected increases in inventory and payroll expenses that would be associated with increased sales activity as well as any additional investments necessary to sustain growth over time (e.g., new equipment or facilities).

It is important to note that while this estimate may provide a good starting point for determining how much external funding will be needed going forward, it should only be used as a guideline since actual needs may vary depending on market conditions and other factors impacting the business during the upcoming fiscal year. Furthermore, it is wise to consider setting aside some of these funds towards contingencies which can help cushion the impact of unforeseen events or changes in market dynamics thus helping Charming Florist maintain its competitive edge within their industry.