Data from Elemental's 2020 Income statement & balance sheet and 2021 sales forecast are below. All $ x thousands. 2021 Forecast: 2021 Sales growth rati Op costs of sales $53,500 $42,800 $410 Actual Ye: 2020 Sales Operating costs Interest Tax rate Dividend Payout 2020 growth rate 45% 77% 25% 45% 2021 IS Forecast: Sales forecast Operating costs EBIT Interest Taxable Inc. Taxes Net Income Dividends (15% of NI) Add to Ret Earnings 30% 2021 2021 Actual YE: 2020 2020 % Forecast 2020 % Forecast Cash Acts Receivable Inventories Net Fixed Assets 2,140 3,210 3,745 10,700 Actual YE: 2020 Acts Payable Notes Payable Accruals LT Debt Common Stock Retained Earning Total Liab & Equ 8,025 1,617 2,408 3,130 1,400 3.215 $19,795 Total Assets $19,795 Elemental's fixed assets are at 100% capacity and current assets reflect desired levels for operations. Elemental anticipates no change in its tax rate or dividend payout rate. Elemental's bank has told them they will not increase the current line of credit. a) Forecast 2021 sales and the income and balance sheet using the % of sales approach. b) What is Elemental's need for external funds (EFN) in the coming year, 2021? EFN = $ Show your work in the areas above. b) What would be the impact on EFN if the firm COGS was forecast at 80% of sales instead of historical levels? Answer in words. Answer here: Data from Elemental's 2020 Income statement & balance sheet and 2021 sales forecast are below. All $ x thousands. 2021 Forecast: 2021 Sales growth rati Op costs of sales $53,500 $42,800 $410 Actual Ye: 2020 Sales Operating costs Interest Tax rate Dividend Payout 2020 growth rate 45% 77% 25% 45% 2021 IS Forecast: Sales forecast Operating costs EBIT Interest Taxable Inc. Taxes Net Income Dividends (15% of NI) Add to Ret Earnings 30% 2021 2021 Actual YE: 2020 2020 % Forecast 2020 % Forecast Cash Acts Receivable Inventories Net Fixed Assets 2,140 3,210 3,745 10,700 Actual YE: 2020 Acts Payable Notes Payable Accruals LT Debt Common Stock Retained Earning Total Liab & Equ 8,025 1,617 2,408 3,130 1,400 3.215 $19,795 Total Assets $19,795 Elemental's fixed assets are at 100% capacity and current assets reflect desired levels for operations. Elemental anticipates no change in its tax rate or dividend payout rate. Elemental's bank has told them they will not increase the current line of credit. a) Forecast 2021 sales and the income and balance sheet using the % of sales approach. b) What is Elemental's need for external funds (EFN) in the coming year, 2021? EFN = $ Show your work in the areas above. b) What would be the impact on EFN if the firm COGS was forecast at 80% of sales instead of historical levels? Answer in words. Answer here
