FOR Q 1 TO Q4, PLEASE REFER TO THE FOLLOWING PROBLEM:

East Coast Yachts Inc Balance Sheet (2018-12-31)

	Assets ($)		Liab & Equity ($)
Cash	3,042,000	A/P	2,190,000
A/R	5,473,000	N/P	2,694,000
Inv	6,136,000	L-T-D	38,000,000
NFA	93,964,000	C Stock	5,000,000
Total	108,615,000	Ret. E	60,731,000
		Total	108,615,000

You also have the following additional information:

Sales in 2019 is expected to grow by 8%

NFA in 2019 will only grow at 4%

All other spontaneous CA and CL will grow at the same rate as sales

Cash at end of 2019 is to be increased by $ 1,000,000 compared to end of 2018

Retained earnings made at end of 2019 is expected to be $ 1,500,000

The 2018 L-T-D/ TE ratio is optimal and should be maintained

Q1

What will be the expected Total Asset value at end of 2019 ?

a. $ 114,405,280

b. $ 114,302,280

c. $ 125,405,280

d. $ 117,405,280

e. $ 115,302,280

Q2

What will be the expected Total Bank Loan (N/P) at the end of 2019 ?

a. $ 4,447,640

b. $ 3,447,640

c. $ 4,427,640

d. $ 3,427,640

e. none of the above

Q3

What will be expected Total Common Shares value at the end of 2019 ?

a. $ 5,886,510

b. $ 4,886,510

c. $ 5,786,510

d. $ 5,986,510

e. $ 6,186,510

Q4

How much additional long term debt in 2019 you will need to issue to finance the purchase of additional fixed assets ?

a. $ 886,515

b. $ 1,371,925

c. no additional debt required

d. $ 1,571,925

e. $ 1,086,515