Assuming Dell sales will grow 50% in 1997, how might the company fund its

growth internally?
To determine the source of funding for 1997, we only need to analyze major cash
flows, rather than breaking them down in terms of operating, investing and financing
activities. Only debt financing is considered to be external funding. Accounts
payable, can also be considered as external funding, since creditors are considered
to be external entities, so they are excluded from the analysis. Moreover, in this,
change in equity is being considered as injection from sponsors only, making it to be
an internal source. 
Assumptions that we need to undertake include constant net profit margin (net profit
as % of sales) of 5.136% and operating assets, as percent of sales, of 29.40%. In
the absence of any non cash charges, such as depreciation, and other information
net income and increase in Equity & Liabilities are accounted for as the only cash
inflows.
As per the analysis in the attached excel sheet, net profit after tax amounted to USD
408 million whilst change in total operating assets amounted to USD 779 million.
After accounting for Equity & Liabilities, cash inflows would amount to USD 1,249
million whereas cash outflows, increase in operating assets, amounted to USD 779
million. This reflects that in 1997 also, internal sources would be sufficient to fund the
growth of the company.