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Data from Epo's 2021 Income statement & balance sheet and 2022 sales forecast are below. Actual Fiscal Year: 2021 Forecast: 2022 SalesTo $3,500,000 Sales
Data from Epo's 2021 Income statement & balance sheet and 2022 sales forecast are below. Actual Fiscal Year: 2021 Forecast: 2022 SalesTo $3,500,000 Sales growth rate 45.0% Costs $2.050.000 Taxable income $1,450,000 Taxes $362,500 Net income $1,087,500 Dividends $163.125 Addition to RE $924,375 CL & Equity: Assets: Actual Fiscal Year: 2021 Forecast 2022 Actual Fiscal Year: 2021 Forecast 2022 Cash S110.000 Acts Payable $265,950 Acts Receivable 390,000 Accruals 273,817 Inventories 365,000 Notes payable 100.000 Net Fixed Assets 1,520.000 LT Debt 521,500 Common Stock 175,300 Retained Earnings Total Liab & Equity 1.048.433 Total Assets $2,385.000 $2,385,000 Epo's fixed assets are at 100% capacity and current asset relationships to sales reflect desired levels for operations. Epo expects to reduce its costs by 10% next year and will face a 30% tax rate. Epo's bank has told them they will not increase the current line of credit. Forecast the pro forma financial statements using a % of sales approach. Show your work above. What is Epo's need for external funds (EFN) in the coming year, 2022? Forecast the pro forma financial statements using a % of sales approach. Show your work above. What is Epo's need for external funds (EFN) in the coming year, 2022? #1 EFN = $ #2 Estimate the sustainable growth rate. #3 What would the impact on EFN be supply chain issues increased costs by 20%? Answer in words and with supporting numbers.
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