AutoSave OFF Home 85-58 Insert Draw Design Layout Pro Forma Worksheet(1) References Mailings Review View Tell me Share Comments Calibri (Bo... v 12 A A Aa Paste B I U ab A AaBbCcDdEe Normal AaBbCcDdEe No Spacing AaBbCcD AaBbCcDdE AaBb AaBbCcDdEe AaBbCcDdEe Heading 1 Heading 2 Title Subtitle Subtle Emph... Styles Pane Dictate Page 2 of 2 379 words English (United States) Allen Products has the following balance sheet for December 31, 2019: Current assets Net fixed assets Total assets $ 5,000 10,000 Accounts payable Accruals $ 1,000 1,000 Notes Payable 500 Long-term debt 5,000 Common equity 5,500 $15,000 Retained Earnings Total 2,000 $15,000 2. Fixed and current assets are fully utilized (full capacity). Determine the additional external funding requirement for next year using the balance sheet formula (i.e., what is your firm's AFN)? Current Assets Net fixed assets Total Assets Allen Products Pro forma Balance Sheet 2020 Accounts Payable Accruals Notes Payable Long-term Debt Common Equity Retained Earnings Totals Liabilities & OE AFN Assets - (Liabilities + Owner's Equity) = 3. Use the long AFN formula (calculation without using financial statements) to calculate AFN for Allen Products. AFN = (A*/S) AS$ - (Lo*/S) AS$ - Mo(S)(1 - Payouto) = 4. Why are the two numbers different? In other words, what assumptions are made in the long formula that were not true for the company when they projected their financial statements? Which is the most accurate AFN? Focus + 117%