1. Project year 6 income statement and balance sheet

2. Compute the additional funds needed (AFN)

Pizza by Mail
Complete the forecasted financial statements below:(Round to the nearest integer.)
		Year 5	ratios	Year 6
Revenue		7,068,828
Cost of Goods Sold		3,981,761
SG and A		2,769,395				Sales growth	0.048
Depreciation Expense		190,149				Cost of debt of last periods long-term debt	0.0555
EBIT		127,523				Tax rate	0.35
Interest Expenses		41,209				Depreciation rate	0.1495
Earnings Before Taxes		86,314				Capital expenditures	$ 190,775
Income Taxes		27,077				Hold goodwill & intagibles, and common stock constant
Net Income		59,237				No dividends
(Round to the nearest integer.)
						Selected ratios
	Year 4	Year 5				Cost of goods sold	0.563284465
						SG&A/sales	0.391775695
ASSETS						Current assets to sales	0.32304266
Total Current Assets	2,278,913	2,283,533				current liabilities/sales	0.15541275
Property, Plant and Equipment	1,058,252	1,054,115
Intangible Assets	681,255	676,190
Total Assets	4,018,420	4,013,838
LIABILITIES AND STOCKHOLDERS' EQUITY
Total Current Liabilities	1,062,735	1,098,586
Long-term Debt (Plug number)	790,799	715,487
Total Liabilities	1,853,534	1,814,073
Stockholders' Equity
Common Stock	1,483,940	1,478,647
Retained Earnings	680,946	721,118
Total Stockholders' Equity	2,164,886	2,199,765
Total Liabilities and Stockholders' Equity	4,018,420	4,013,838
a. From the forecasted financial statements, what are the additional funds needed (AFN) in Year 6?
The additional funds needed are: