A 1 ACME General Corp. 4 Note: Unites in Millions of USD 5 Income Statement Historical AFN Calculation Statements including AFN 2019 2020 2020 $ 4,512.44 $ 2,759.64 $ 983.72 $ 225.62 $ 543.46 $ 105.73 The objective of this exercise is to calculate the AFN for 2020 and balance the balance sheet. Assume that sales grow by 20% in 2020. Calculate Additional Funds Needed for 2020 assuming the operating accounts in the income statement and balance sheet are a percentage of sales, and the financial accounts remained constant except retained earnings where you might retain earnings. Estimate the value for each of the accounts for 2020 in column C to estimate the Additional Funds Needed. In column D, show the balance sheet balanced assuming that (1) if you have excess funds, you distribute a special dividend, and (2) if you need external funds, you increase short-term debt. Assume that the tax rate is 30% and you are working at 100 percent capacity. $ $ $ $ 105.73 437.73 131.32 306.41 $ $ 104.89 201.52 7 Sales 8 Cost of goods sold 9 Sales General and Administrative expenses 10 Depreciation 11 Operating profit (EBIT) 12 Interest expenses 13 Intereses sobre nueva deuda 14 Total interest expenses 15 Taxable income 16 Taxes 17 Net income 18 19 Dividends 20 To retained earnings 21 22 Balance Sheet 23 24 Cash 25 Inventory 26 Accounts Receivable 27 Total Current Assets 28 Property, plan, and equipment 29 Total Assets 30 31 Accounts payable 32 Accrued expenses 33 Short-term debt 34 Total current liabilities 35 Long-term debt 36 Total liabilities 37 Common stock 38 Retained earnings 39 Total equity 40 Total liabilities plus equity Historical 2019 $ 45.12 $ 673.07 $ 1,128.11 $ 1,846.30 $ 2,168.35 $ 4,014.66 $ 451.24 $ 225.62 $ 335.17 $ 1,012.03 $ 1,000.00 $ 2,012.03 $ 600.00 $ 1,402.63 $ 2,002.63 $ 4,014.66 AFN 42 2020 The objective of this exercise is to calculate the AFN for 2020 and balance the balance sheet. Assume that sales grow by 20% in 2020. Calculate Additional Funds Needed for 2020 assuming the operating accounts in the income statement and balance sheet are a percentage of sales, and the financial accounts remained constant except retained earnings where you might retain earnings. Estimate the value for each of the accounts for 2020 in column C to estimate the Additional Funds Needed. In column D, show the balance sheet balanced assuming that (1) if you have excess funds you distribute a special dividend, and (2) if you need external funds, you increase short-term debt. Assume that the tax rate is 30% and you are working at 100 percent capacity. File Home Insert Page Layout Formulas Data Review View Help 1 ACME General Corp. 4 Note: Unites in Millions of USD 5 Income Statement 7 Sales 8 Cost of goods sold 9 Sales General and Administrative expenses 10 Depreciation 11 Operating profit (EBIT) 12 Interest expenses 13 Intereses sobre nueva deuda 14 Total interest expenses 15 Taxable income 16 Taxes 17 Net income Historical AFN Calculation Statements including AFN 2019 2020 2020 $ 4,512.44 $ 2.759.64 $ 983.72 225.62 543.46 105.73 105.73 437.73 131.32 306.41 18 104.89 19 Dividends 20 To retained earnings 21 22 Balance Sheet 201.52 23 Historical 2019 $ 45.12 $ 673.07 $ 1,128.11 $ 1,846.30 $ 2,168.35 $ 4,014.66 24 Cash 25 Inventory 26 Accounts Receivable 27 Total Current Assets 28 Property, plan, and equipment 29 Total Assets 30 31 Accounts payable 32 Accrued expenses 33 Short-term debt 34 Total current liabilities 35 Long-term debt 36 Total liabilities 37 Common stock 38 Retained earnings 39 Total equity 40 Total liabilities plus equity 41 $ 451.24 $ 225.62 $ 335.17 $ 1,012.03 $ 1,000.00 $ 2,012.03 $ 600.00 $ 1,402.63 $ 2,002.63 $ 4,014.66 AFN 42 | Q1 Q2 @
