I would appreciate it if you solve the transactions by explaining and explaining in detail, thank you in the form of a computer.

4- Kopp Corporation's income statement and balance sheet for the year ending December 31, Year 1, are reproduced below: KOPP CORPORATION Income Statement For Year Ended December 31, Year 1 $ 960,000 (550,000) 410,000 Net sales Cost of goods sold Gross profit Depreciation expense. Selling and administrative expenses Income before taxes. Income taxes (48%) $ 30,000 160,000 (190,000) 220,000 (105,600) $ 114,400 Net income KOPP CORPORATION Balance Sheet December 31, Year 1 Assets Current assets Cash. Marketable securities. Accounts receivable Inventory Total current assets. Plant and equipment Less: Accumulated depreciation Total assets $ 30,000 5,500 52,500 112,000 $200,000 630,000 (130.000) 500.000 $700,000 $ 60,000 50,000 Liabilities and Equity Current liabilities Accounts payable Notes payable. Total current liabilities. Long-term debt. Equity Capital stock Retained earnings. Total liabilities and equity $110,000 150,000 250,000 190,000 440,000 $700,000 Additional information: 1. Purchases in Year 1 are $450,000. 2. In Year 2, management expects 15% sales growth and a 10% increase in all expenses except for depreciation, which increases by 5%. 3. Inventory turnover for Year 1 is 5.0, and management expects an inventory turnover ratio of 6.0 for Year 2. 4. A receivable collection period of 90 days, based on year-end accounts receivable, is planned for Year 2. 5. Year 2 income taxes, at the same rate on pretax income in Year 1, will be paid in cash. 6. Notes payable of $20,000 will be paid in Year 2. 7. Long-term debt of $25,000 will be repaid in Year 2. 8. Kopp desires a minimum cash balance of $20,000 in Year 2. 9. The ratio of accounts payable to purchases will remain the same in Year 2 as in Year 1. Required: a. Prepare a statement of forecasted cash inflows and outflows (what-if analysis) for the year ending Decem- ber 31, Year 2. b. Will Kopp Corporation have to borrow money in Year 2