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B D E F G 2020 2021 2020 2021 1,040 2,904 6,218 10.162 644 3,812 5,910 10.366 Current Liabilities Accounts payable Accruals Notes payable Total Current Llabilities 1,704 60 826 2,590 1,872 418 858 3,148 Long-term debt 6,234 5,000 19,088 20,066 Owner's Equity Common stock and paid in surplus Retained Eamings Total Equity 20,000 426 20,426 20,000 2,284 22,284 1 Sea Thru Surfboards 2 Balance Sheets as of December 31 3 4 5 Assets 6 Current Assets 7 Cash Accounts receivable 9 Inventory 10 Total Current Assets 11 12 Fixed Assets 13 Net plant and 14 equipment 15 16 17 18 19 20 Total assets 21 22 23 SeaThru Surfboards, Inc. 24 Income Statement 25 26 Sales 27 Cost of goods sold 28 Depreciation 29 Eamings before interest and taxes 30 Interest paid Taxable income 32 Taxes (34%) 33 Net Income 34 35 Dividends 36 Addition to retained eamings 37 38 39 Shares outstanding 40 Price per share 41 After-Tax Cost of Capital 29,250 30.432 Total Debt and Equity 29 250 30.432 2,020 20,160 7,020 1,170 11,970 1,000 10,970 3,730 7,240 2,021 22,400 7,800 1,300 13,300 1,170 12,130 4,124 8,006 31 6,148 1,092 6,148 1,858 10,000 $12 10% 10,000 $14 10% Financial Statements Cash Flow Ratio Analysis Common-sized Growth Rates 6. On the "AFN worksheet, calculate the additional financing needed assuming sales increase 30%, dividends rema fixed at $6,148. and: Fixed Assets are being used at full capacity . Fixed Assets are being used at 80% capacity B D E F Full Capacity Partial Capacity 1 Se Thru Surfboards 2 Additional Funds Needed 3 4 5 6 Projected Sales Increase (%) 7 Projected Sales ($) 8 Projected Sales increase ($) 9 Capacity 10 11 Additional Funds Needed (AFN) 12 Projected Increase in Assets (A/S)*(A Sales) 13 Spontaneous Increase in Liabilities (L*/S)"(A Sales) 14 Increase in Retained Earnings (NPM X Sales - Dividends) 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 Financial Statements Cash Flow Ratio Analysis Common-sized Growth Ratos AFN