Following is the balance sheet for the end of the year 2018 for Silver Spurs, Inc.:

2018 2019

Current Assets $15,000 _______________

Net Fixed Assets 20,000 _____________________________

Total Assets $35,000 __________________

Accounts Payable $ 2,000 ________________

Notes Payable 1,000 ________________

Long-Term Debt 10,000 ________________

Common Equity 22,000

Total Liabilities/Equity $35,000 __________________

AFN _________________

They have generated sales for 2018 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 2019 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 deprecation expense will be taken in 2019.

Assume notes payable at the end of 2018 are paid off in 2019.

Project next years balance sheet in the space provided above to determine the additional funding needed (AFN) for this new product.

NOTE: Fixed assets do NOT include Current Assets.