[17 points] Use the financial statements from 2019 below and the following sales forecast to calculate the AFN for Over the Rainbow using the long formula. Sales are expected to increase to $2,818 in 2020.

Rainbow Income 2019 Over the Statement Sales Revenue $2,450 Less: CGS 1380 Gross Profit 1,070 Operating Expenses 658 Depreciation 48 Operating Profit (EBIT) 364 Less: Interest Expense 92 Net Profit Before Taxes (EBT) 272 Less: Taxes (40%) 109 Net Profit After Taxes (NI) 163 Less: Dividends 50 To Retained Earnings $113 Over the Rainbow Balance Sheet 2019 Assets Current Assets: Cash & Marketable Securities S845 Accounts Receivable 360 Inventory 525 Total Current Assets $1,730 Property, Plant & Equipment 360 Less: Accumulated Depreciation 80 Net Property, Plant & Equipment 280 Total Assets $2,010 Liabilities & Owner's Equity Current Liabilities: 350 Accounts Payable Notes Payable 160 Accruals 185 Total Current Liabilities $695 Long-term Liabilities 265 Total Liabilities $960 Owner's Equity: Preferred Stock 156 Common Stock, par value 125 Additional Paid-in Capital 354 Retained Earnings 415 Total Owner's Equity 1,050 Total Liabilities & Owner's Equity $2,010