10. Use the Income Statement and Balance Sheet below along with forecast assumptions to build a forecast of the 2021 financial statements and the External Funding Required. You can attach a spreadsheet with your exam submission. SHOW YOUR WORK (20 points) Income Statement 2020 2021 Assumptions 8,250 9 percent growth 6,600_75 percent of sales 1,650 Net Sales Cost of goods sold Gross profit Expenses General, selling, and administrative expenses Net interest expense Earnings before tax Tax Earnings after tax Dividends Balance Sheet 1,238 15 percent of sales 179 8 percent interest 233 82 25 percent tax 152 30 25 percent dividend payout 2020 Assets Current assets Cash and securities Accounts receivable Inventory Prepaid expenses Total current assets Net fixed assets Total assets 1,130 45 days sales 1,469 31 day collection period 825 5 times turnover 12 hold at 2020 level 3,436 250 10 depreciation per year 3,686 Liabilities and Owners' Equity Current liabilities Bank loan Accounts payable CMLTD Accrued wages Total current liabilities Long-term debt Common stock Retained earnings Total liabilities and owners' equity 1,732 plug, initially zero 940 25 days payable 10 long-term debt amortizes 10/yr 4 hold at 2020 level 2,686 500 10 amortization per year 100 hold at 2020 level 400 previous RE+NI-divs 3,686 10. Use the Income Statement and Balance Sheet below along with forecast assumptions to build a forecast of the 2021 financial statements and the External Funding Required. You can attach a spreadsheet with your exam submission. SHOW YOUR WORK (20 points) Income Statement 2020 2021 Assumptions 8,250 9 percent growth 6,600_75 percent of sales 1,650 Net Sales Cost of goods sold Gross profit Expenses General, selling, and administrative expenses Net interest expense Earnings before tax Tax Earnings after tax Dividends Balance Sheet 1,238 15 percent of sales 179 8 percent interest 233 82 25 percent tax 152 30 25 percent dividend payout 2020 Assets Current assets Cash and securities Accounts receivable Inventory Prepaid expenses Total current assets Net fixed assets Total assets 1,130 45 days sales 1,469 31 day collection period 825 5 times turnover 12 hold at 2020 level 3,436 250 10 depreciation per year 3,686 Liabilities and Owners' Equity Current liabilities Bank loan Accounts payable CMLTD Accrued wages Total current liabilities Long-term debt Common stock Retained earnings Total liabilities and owners' equity 1,732 plug, initially zero 940 25 days payable 10 long-term debt amortizes 10/yr 4 hold at 2020 level 2,686 500 10 amortization per year 100 hold at 2020 level 400 previous RE+NI-divs 3,686