Exhibit 2 Balance Sheets at December 31, 2015-2017, and March 31, 2018 (all figures in thousands of dollars) 15 p Cash Accounts receivable Inventory Current assets Property, net Total assets 7 739 486 345 66 932 162 1,09 Notes payable, bank Notes payable, Mr. Hawkins Notes payable, trade Accounts payable Accrued expenses Current portion of LT Debt Current liabilities LT Debt Total liabilities Net worth Total liabilities & equity Compute Outside Funds Needed (OFN) for Watkins Lumber Company for 2018 (use the data for December 31, 2017 as your starting point that is, IGNORE everything in the case other than the December 31, 2017 data) assuming the following: Sales for Watkins Lumber Company for 2018 are expected to grow by 22.5 percent The projected net profit margin for 2018 is 2.0 percent Mr. Watkins plans to pay out 30% of net income as dividends in 2018 Cash will remain unchanged, accounts receivable and inventory will grow as a percent of sales, net fixed assets (ie, property, net) will grow at 30% of the growth rate in sales Accounts payable and accruals will grow as a percent of sales Total long-term debt will grow at half of the growth in net fixed assets (thus, it net fixed assets grow by 20, total long-term debt will grow by 10). NOTE Sales from Watkins 2017 Income statement was $2694