Help with #5?

188 Part 2: Organizing and Operating the Venture 5. [Cash Burn and Build) Following are two years of income statements and balance sheets for the Munial Exports Corporation. MUNICH EXPORTS CORPORATION 2016 2015 BALANCE SHEET $ 50,000 $ 50,000 Cash 300,000 200,000 450,000 700,000 300,000 $1,000,000 Accounts receivable Inventories 570,000 920,000 380,000 $1,300,000 Total current assets Fixed assets, net Total assets $ 130,000 50,000 $ 180,000 Accounts payable 70,000 Accruals 90,000 90,000 270,000 400,000 Bank loan Total current liabilities 340,000 Long-term debt Common stock ($0.05 par) 550,000 50,000 200,000 160,000 $1,300,000 50,000 Additional paid-in-capital Retained earnings Total liabilities and equity 200,000 80,000 $1,000,000 INCOME STATEMENT 2015 2016 Net sales $1,300,000 780,000 $1,600,000 960,000 640,000 160,000 Cost of goods sold Gross profit Marketing General and administrative 520,000 130,000 150,000 150,000 Depreciation EBIT 40,000 55,000 200,000 275,000 55,000 220,000 Interest 45,000 Earnings before taxes Income taxes (40% rate) Net income 155,000 62,000 $ 93,000 88,000 $ 132,000 A. Calculate the cash build, cash burn, and net cash burn or build for Munich Exports in 2016. B. Assume that 2017 will be a repeat of 2016. If your answer in Part A resulted in a net cash burn po- sition, calculate the net cash burn monthly rate and indicate the number of months remaining "until out of cash." If your answer in Part A resulted in a net cash build position, calculate the net cash build monthly rate and indicate the expected cash balance at the end of 2017