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5. XYZ's balance sheet and income statement are given below: Balance Sheet: Cash A/R Inventories Fixed assets Total assets $ 100 Accounts payabe Notes payable

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5. XYZ's balance sheet and income statement are given below: Balance Sheet: Cash A/R Inventories Fixed assets Total assets $ 100 Accounts payabe Notes payable Long-term debt! (10%) Comon equity 20 shares) $ 50 150 0 700 91,000 Income Statement: Sales Cost of goods solod EBIT Interest EBT Taxes (33.3338) Net income $1,000 855 145 70 $ 75 25 50 xYz is forecasting a 108 sales increase next year. They lan to pay 30 of their net income out as dividend. All of their assets are fully utilized. They expect their profit margin to remain constant. a. Using the AFN equation, what is their AFN (addition l funds needed)2 b. What if the fixed assets are only 80% utilized (1.e we have 20% unused capacity going into next year). What is the EN now

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