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Following is the balance sheet for the end of the year 2017 for Silver Spurs, Inc.: Current Assets 2017 $15,000 Net Fixed Assets $20,000
Following is the balance sheet for the end of the year 2017 for Silver Spurs, Inc.: Current Assets 2017 $15,000 Net Fixed Assets $20,000 Total Assets Accounts Payable $35,000 $2,000 Notes Payable $ 1,000 Long-Term Debt $10,000 Common Equity $22,000 2018 Total Liabilities/Equity $35,000 They have generated sales for 2017 of $35,000 resulting in net income of $15,000. Due to the difficulty associated with acquiring raw materials, Silver Spurs has experienced sluggish business that has caused fixed assets to be underutilized. Management thinks it can double sales in 2018 through the introduction of a new product. No new fixed assets will be required and the dividend payout ratio will be 100%. Assume no additional depreciation expense will be taken in 2018. Project next year's balance sheet in the space provided above to determine the additional funding needed (AFN) for this new product. Assume notes payable at the end of 2017 are paid off in 2018.
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