Forecast 2020 income statement and balance sheet using the percent of sales method and the following assumptions:  (1) sales in 2020 will be 12.5

Forecast 2020 income statement and balance sheet using the percent of sales method and the following assumptions: 

(1) sales in 2020 will be 12.5 million; 

(2) tax rate keeps the same; 

(3) each item that changes with sales will be the 2 year average percentage of sales; 

(4) fixed asset will increase $1,000,000 with a 10 year straight line depreciation schedule with 0 salvage value;

(5) the common stock dividends will be $202,000; 

(6) interest rate on short-term and long-term debt will be 9%; 

(7) Cash, short-term investment will be the same as 2019; 

(8) COGS, Selling G&A expenses, A/R, inventory, A/P, Accruals will change in proportion to sales; 

(9) Notes payable and long-term debt will keep the same; and if there is borrowing need, the company will borrow from long-term debt; 

(10) the company will not issue stocks in 2020.

Questions:

a) What is the additional funds needed in 2020? Is this a surplus or deficit or balanced? (Without iteration, or borrowing happens at last day of the year)

b) Assume that the AFN will be absorbed by long-term debt, set up an iterative worksheet to find total accumulated AFN (borrowing happens during the year)

c) Why accumulated AFN increases in part b)? Please explain the phenomenon.

<a href=” dash lite</a>

Share This Post

Email
WhatsApp
Facebook
Twitter
LinkedIn
Pinterest
Reddit

Order a Similar Paper and get 15% Discount on your First Order

Related Questions

Share your expectation and understanding of Milestone Two. Identify any initial questions or concerns you have regarding:Balanced scorecard analysis

Share your expectation and understanding of Milestone Two. Identify any initial questions or concerns you have regarding: Balanced scorecard analysis Performance analysis tool and techniques Cost-benefit analysis The deliverables expected in Milestone Two In preparation for the upcoming milestone, address the following: Describe your understanding of the business environment of

The Jardine Matheson Group is a major conglomerate within the Asian region. Its business interests include large companies, which are market leaders in

The Jardine Matheson Group is a major conglomerate within the Asian region. Its business interests include large companies, which are market leaders in many fields, including engineering and construction, transport services, motor trading, property, retailing, and insurance broking. Jardine Matheson was incorporated in Bermuda; it has its primary share listing

Criteria Choose a company from the Fortune 500 list. Your choice must be below the top 100 (101-500) in the ranking at

Criteria Choose a company from the Fortune 500 list. Your choice must be below the top 100 (101-500) in the ranking at https://www.zyxware.com/articles/4344/list-of-fortune-500-companies-and-their-websites#rank-101-400 or you can utilize Google to find a list of Fortune 500 companies. Determine a business challenge this company faces that could be addressed through business analysis techniques,

See attachedManagement Applications of Accounting DB II •   Your initial post should be at least 300 words in length. •   Your initial post

See attached Management Applications of Accounting DB II •   Your initial post should be at least 300 words in length. •   Your initial post should include at least one APA-formatted scholarly, professional, or textbook reference with accompanying in-text citation to support any paraphrased, summarized, or quoted material. Post 2: Response post to

se attachedUnit VII EssayChoose a well-known global organization (e.g., Amazon, McDonald’s, Zara, Unilever) that operates in multiple

se attached Unit VII Essay Choose a well-known global organization (e.g., Amazon, McDonald’s, Zara, Unilever) that operates in multiple international markets. Research how the chosen organization distributes its products across different markets. Consider both physical (retail, wholesale) and digital (e-commerce, direct-to-consumer) channels. Describe the marketing distribution channels and explain whether