Complete the model and state the cash balance required to balance the balance sheet in Year 1.

AssumptionsYear 0Year 1Investments growth15.0Accounts payable % net income19.0%Long term debt increase (decrease)6.0Income statementYear 0Year 1Net income18.027.0Balance sheetYear 0Year 1Cash25.0Investments87.0Total assets112.0Accounts payable18.0Long term debt27.0Equity67.0Total liabilities and equity112.0CheckCash flow statementNet incomeIncrease (decrease) in accounts payableCash flow from operations(Increase) decrease in investmentsCash flow from investing activitiesInc (dec) in long term debtCash flow from financing activitiesBeginning cashNet cash flowEnding cash25.0