1. 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 AF?

   Allen Products has the following balance sheet for December 31, 2019:

   Current assets	$ 5,000	Accounts payable	$ 1,000
   Net fixed assets	10,000	Accruals	1,000
   		Notes Payable	500
   		Long-term debt	5,000
   		Common equity	5,500
   		Retained Earnings	2,000
   Total assets	$15,000	Total	$15,000

2. Allen Products
   Pro forma Balance Sheet
   2020
   Current Assets		Accounts Payable
   		Accruals
   		Notes Payable
   Net fixed assets		Long-term Debt
   		Common Equity
   		Retained Earnings
   Total Assets		Totals Liabilities & OE

   AFN = Assets (Liabilities + Owners Equity) =

   Allen Products Inc. Income Statement	2020	Calculations
   Sales Revenue	107,250	Given
   Less: Cost of Goods Sold	46063	41875*107250/97500
   Gross Profits (Margin)	61188	41875*46063/55625
   Less: Operating Expenses	24375	PREVIOUS YEAR
   Operating Profits (Margin) (EBIT)	36813	GP-OPERATING EXP
   Less: Interest Expense	3000	GIVEN
   Net profits before tax (EBT)	33813	EBIT-INTEREST
   Less: Taxes (rate = 35%)	11834	EBT*.35
   Net Profits after taxes (EAT, net income, net margin)	21978	EBT-TAXES
   Less: Dividends	10989	NET PROFITS*50%
   To Retained Earnings	10989	NET PROFIT-DIVIDENDS