For the following problems, use Exhibit A. For exhibit A, the amount of sales depends on the production volume shown below. The dividend policy is to pay 25% in dividends.

NOTE (D) IS 0 PLUG IN PLEASE FOR MARKET SHARE

c) What will be the accounts payable for 2021?

d) Imagine that the corporation decides to use debt for any external financing, what would be the amount of debt in 2020?

Integrated Financial Statements Exhibit A: Pro Forma Financial Statements 2019 2020 2021 2022 2023 2024 Income Statement Sales Revenue 45,000.00 2 less: Cost of Goods Sold $ 36,900.00 3 EBITDA 8,100.00 less: Depreciation Expense 4,500.00 5 EBIT 3,600.00 6 less: Interest and Other Expenses 800.00 7 PRE-TAX INCOME 2,800.00 8 less: Income Tax $ 1,120.00 9 NET INCOME $ 1,680.00 $ Production Volume (000s units) 1 Market Size 2 Market Share 3 Production Volume (Market Size X Market Share) 4 Average Sales Price 10,000.00 10.00% 1000.00 $45.00 $ 10,500.00 $ 11,025.00 [10+(D/2)+2]% [10+2*(D/2)+4]% $ 11,576.25$ 12,155.06 [10+3*(D/2)+6]% [10+4* (D/2)+8]% $ 12,762.82 [10+5*(D/2)+10]% $45.90 $46.82 $47.75 $48.71 $49.68 Integrated Financial Statements Exhibit A: Pro Forma Financial Statements 2019 2020 2021 2022 2023 2024 Balance Sheet 1 ASSETS Cash and Equivalents 7,200.00 3 Accounts Receivable 6,300.00 4 Inventory 7,650.00 5 CURRENT ASSETS 21,150.00 29,700.00 Property, Plant and Equipment 7 TOTAL ASSETS 50,850.00 8 LIABILITIES AND EQUITY 9 Accounts Payable 10,350.00 10 CURRENT LIABILITIES 10,350.00 11 Long-Term Debt 8,000.00 12 TOTAL LIABILITIES 18,350.00 13 STOCKSHOLDER'S EQUITY 32,500.00 14 Retained Earnings 15 TOTAL EQUITY 32,500.00 16 TOTAL LIABILITIES AND EQUITY 50,850.00 Integrated Financial Statements Exhibit A: Pro Forma Financial Statements 2019 2020 2021 2022 2023 2024 Income Statement Sales Revenue 45,000.00 2 less: Cost of Goods Sold $ 36,900.00 3 EBITDA 8,100.00 less: Depreciation Expense 4,500.00 5 EBIT 3,600.00 6 less: Interest and Other Expenses 800.00 7 PRE-TAX INCOME 2,800.00 8 less: Income Tax $ 1,120.00 9 NET INCOME $ 1,680.00 $ Production Volume (000s units) 1 Market Size 2 Market Share 3 Production Volume (Market Size X Market Share) 4 Average Sales Price 10,000.00 10.00% 1000.00 $45.00 $ 10,500.00 $ 11,025.00 [10+(D/2)+2]% [10+2*(D/2)+4]% $ 11,576.25$ 12,155.06 [10+3*(D/2)+6]% [10+4* (D/2)+8]% $ 12,762.82 [10+5*(D/2)+10]% $45.90 $46.82 $47.75 $48.71 $49.68 Integrated Financial Statements Exhibit A: Pro Forma Financial Statements 2019 2020 2021 2022 2023 2024 Balance Sheet 1 ASSETS Cash and Equivalents 7,200.00 3 Accounts Receivable 6,300.00 4 Inventory 7,650.00 5 CURRENT ASSETS 21,150.00 29,700.00 Property, Plant and Equipment 7 TOTAL ASSETS 50,850.00 8 LIABILITIES AND EQUITY 9 Accounts Payable 10,350.00 10 CURRENT LIABILITIES 10,350.00 11 Long-Term Debt 8,000.00 12 TOTAL LIABILITIES 18,350.00 13 STOCKSHOLDER'S EQUITY 32,500.00 14 Retained Earnings 15 TOTAL EQUITY 32,500.00 16 TOTAL LIABILITIES AND EQUITY 50,850.00