need help solving the yellow parts on the balance sheet, if you could show your work briefly that would be a big help, thank you!

3 5000 5 Assets Cash Inventories Total Current Assets Equipment Total Assets year 1 Liabilities and Equity $ 15,000.00 Short term Debt $ 7,000.00 Long term Debt Equity Total Liabilites and Eq 6 7 8 9 10 "To cushion your company, you decide to raise an additional $10,000 of cash over the $5000 needed for the project 11 Cash needed for project $ 5,000.00 12 Additional cash for company $ 10,000.00 13 "Report Equipment before taxes as you will need to raise that much money initially 14 Debt and financing 15 Assume bank will loan you $5000 of ST debt and 80% of equipment value in an amoritized loan 16 Short term debt 5000 17 Long term debt 18 You will need to raise the remainder of the money in equity 19 The bank loans both ST and LT debt at a cost of 7.00% 20 21 What is the percentage (weight) of debt and percentage (weight) of equity? 22 Debt 23 Equity 24 25 Equity: 26 Assume you estimate the rate your equityholders should carn based on estimated beta 27 (This is obviously not a public company but you estimate a beta of 1.3 28 risk free rate 1.50% 29 market risk premium 6.00% (I use expected return on the market it is 7.5% 30 31 What is weighted average cost of ital (WACC)? 32 cost of common stock 33 Cost of debt 34 WACC 35 36 At the weighted average cost of capital above, what is the Net Present Value of the Project? 37 Net Present Value 38 H B D 6 Need to buy Cost year Expect to sell this equipment in years for the amount below: 7 Tshirt producing machine $ 100,000.00 $ 40.000,00 Tshirt stamping machine $ 6,000.00 $ 1.000.00 9 (Wilrent space for production) 10 Expect to sell 10,000 tshirts year 1 11 Price of shirts $20 12 Fabric/thread/dye cost per shit $6 13 Hourly employee cost per shirt $3 14 Paint and stencil per shirt $1 15 Manager salary $40,000 per year 16 Rent on room in building $18,000 per year 17 Fored utility costs $10,000 per year 18 Advertising and other costs $12,000 per year 19 Tax rate 21 year Year2 years yeand years 20 Forecasted number of shirts sold (Grows 5% per year! 10,000 10,500.00 11.025.00 11,576.25 12.155.06 21 Net Working Capital balance needed Year $12.000 22 Net Working Capital balance years 1-5 10% of revenue that year 23 Net Working Capital consists of $5000 of cash and the remainder is hwntories 24 Net Working capital is fully recovered at the end of the project. years, 25 26 Required retum 8 27. Assume 2018. Tax laws so machinery expensed in year 1 to book value of 10 28 While the company so may not be able to take tax credits it has losses, ignore this and simply assume to credit tomobile income in negotive 29 Setup cash flows expected on the project 30 1. Cash flow for Capital expenditures year 106,000.00 31 2. Gash flow for selling cap ex years $ 32,390.00 32 3. Forecast revenues and Variable costs year year years years Years 33 Revenues 200,000 $ 210.0005 220,500 5 231.5255 243,101 34 Varsable costs 5 100.000 $ 105.000 3 110.2505 115,7635 121.551 $ 5 243,101 121.551 80,000 36 4. Find EBIT and Operating Cash Flow (assume zero depreciation 37 Revenue 5 38 Variable costs 39 Fred Costs 40 Depreciation Expense (bonus) 41 EBIT 42 -Taxes 43 Depreciation Operating Cash Flow 200.0005 100,000 $ 10,000 $ 106,000 $ 155,000 $ (18,060) 5 106,000 38,060S 2100005 1050005 80.0005 5 25.000 5,250 $ 220.500 5 110,250 $ 80.000 5 $ 30.250 5 6,353 S 5 5 5 $ 5 231.5255 115,763 5 30.000 5 5 35,7635 7,510 5 41.551 19,7505 23.8905 28,2525 year2 yeari 200,000 $ 100,000 $ 210,000 $ 105.000 5 year3 220,500 $ 110,2505 Yeard 231,525 115,763 $ years 243,101 121,551 200,000 5 100,000 $ 80.000 3 106,000 S (86,000) 118/060) $ 106,000 33,000 $ 210,000 $ 105,000 30,000 5 S 25,000 $ 5.250 5 220,500 5 110,250 $ 80,000 $ 5 30,2505 6,3535 29 Setup cash flows expected on the prolect 30 1. Cash flow for Capital expenditures year $ 106,000.00 31 2. Cash flow for selling cap ex year 5 $ 32,390.00 32 3. Forecast revenues and Variable costs 33 Revenues $ 34 Variable Cost $ $ 35 36 4. Find EBIT and Operating Cash Flow (assume zero depreciation) 37 Revenues $ 38 Variable costs 5 39 Fred Costs $ 40 Depreciation Expense (Bonus) 5 41 EBIT $ 42 -Taxes $ 43 Depreciation 5 46 Operating Cash Flow $ 45 46 5. Net Working Capital year 47 Balance $12,000 $ 48 change 49 Recovery SO NWC Cash Flow 51 Project FCF 52 Capital expenditure Cash Flow (106,000.00 53 Operatin Cash Flow 5 54 NWC Cash Flow SS Free Cash Flow 56 Met Present Value $142,142.92 57 TRR NUMI 58 MIRR NUMI 59 60 Use Net Present Value, RR and MIRR functions in Excel 231,525 5 243,101 115,7635 121.551 80,000 $ 30.000 5 35,763 5 41551 7,510 5 3.726 19.7505 23,8985 28,2525 32,825 Year 20.000 $ (8.000 5 year2 21.000 $ (1,000) 5 year 22.050 $ 11.050 $ years 23,153 $ 11.103) 5 5 (1,103) 5 24,310 11.158) 112,310) 23,153 18,000) 5 11.000) 11.050) 5 0 05.32,390.00 38 050 5 19,7505 23.8985 20.2525 32,825 18.000.001 5 11.000.0015 01.050.00 5 11.102.50 $ 2.152.50 30.060.00 5 18,750.00 5 22.147.50 5 27.149.88 $88367.49 3 5000 5 Assets Cash Inventories Total Current Assets Equipment Total Assets year 1 Liabilities and Equity $ 15,000.00 Short term Debt $ 7,000.00 Long term Debt Equity Total Liabilites and Eq 6 7 8 9 10 "To cushion your company, you decide to raise an additional $10,000 of cash over the $5000 needed for the project 11 Cash needed for project $ 5,000.00 12 Additional cash for company $ 10,000.00 13 "Report Equipment before taxes as you will need to raise that much money initially 14 Debt and financing 15 Assume bank will loan you $5000 of ST debt and 80% of equipment value in an amoritized loan 16 Short term debt 5000 17 Long term debt 18 You will need to raise the remainder of the money in equity 19 The bank loans both ST and LT debt at a cost of 7.00% 20 21 What is the percentage (weight) of debt and percentage (weight) of equity? 22 Debt 23 Equity 24 25 Equity: 26 Assume you estimate the rate your equityholders should carn based on estimated beta 27 (This is obviously not a public company but you estimate a beta of 1.3 28 risk free rate 1.50% 29 market risk premium 6.00% (I use expected return on the market it is 7.5% 30 31 What is weighted average cost of ital (WACC)? 32 cost of common stock 33 Cost of debt 34 WACC 35 36 At the weighted average cost of capital above, what is the Net Present Value of the Project? 37 Net Present Value 38 H B D 6 Need to buy Cost year Expect to sell this equipment in years for the amount below: 7 Tshirt producing machine $ 100,000.00 $ 40.000,00 Tshirt stamping machine $ 6,000.00 $ 1.000.00 9 (Wilrent space for production) 10 Expect to sell 10,000 tshirts year 1 11 Price of shirts $20 12 Fabric/thread/dye cost per shit $6 13 Hourly employee cost per shirt $3 14 Paint and stencil per shirt $1 15 Manager salary $40,000 per year 16 Rent on room in building $18,000 per year 17 Fored utility costs $10,000 per year 18 Advertising and other costs $12,000 per year 19 Tax rate 21 year Year2 years yeand years 20 Forecasted number of shirts sold (Grows 5% per year! 10,000 10,500.00 11.025.00 11,576.25 12.155.06 21 Net Working Capital balance needed Year $12.000 22 Net Working Capital balance years 1-5 10% of revenue that year 23 Net Working Capital consists of $5000 of cash and the remainder is hwntories 24 Net Working capital is fully recovered at the end of the project. years, 25 26 Required retum 8 27. Assume 2018. Tax laws so machinery expensed in year 1 to book value of 10 28 While the company so may not be able to take tax credits it has losses, ignore this and simply assume to credit tomobile income in negotive 29 Setup cash flows expected on the project 30 1. Cash flow for Capital expenditures year 106,000.00 31 2. Gash flow for selling cap ex years $ 32,390.00 32 3. Forecast revenues and Variable costs year year years years Years 33 Revenues 200,000 $ 210.0005 220,500 5 231.5255 243,101 34 Varsable costs 5 100.000 $ 105.000 3 110.2505 115,7635 121.551 $ 5 243,101 121.551 80,000 36 4. Find EBIT and Operating Cash Flow (assume zero depreciation 37 Revenue 5 38 Variable costs 39 Fred Costs 40 Depreciation Expense (bonus) 41 EBIT 42 -Taxes 43 Depreciation Operating Cash Flow 200.0005 100,000 $ 10,000 $ 106,000 $ 155,000 $ (18,060) 5 106,000 38,060S 2100005 1050005 80.0005 5 25.000 5,250 $ 220.500 5 110,250 $ 80.000 5 $ 30.250 5 6,353 S 5 5 5 $ 5 231.5255 115,763 5 30.000 5 5 35,7635 7,510 5 41.551 19,7505 23.8905 28,2525 year2 yeari 200,000 $ 100,000 $ 210,000 $ 105.000 5 year3 220,500 $ 110,2505 Yeard 231,525 115,763 $ years 243,101 121,551 200,000 5 100,000 $ 80.000 3 106,000 S (86,000) 118/060) $ 106,000 33,000 $ 210,000 $ 105,000 30,000 5 S 25,000 $ 5.250 5 220,500 5 110,250 $ 80,000 $ 5 30,2505 6,3535 29 Setup cash flows expected on the prolect 30 1. Cash flow for Capital expenditures year $ 106,000.00 31 2. Cash flow for selling cap ex year 5 $ 32,390.00 32 3. Forecast revenues and Variable costs 33 Revenues $ 34 Variable Cost $ $ 35 36 4. Find EBIT and Operating Cash Flow (assume zero depreciation) 37 Revenues $ 38 Variable costs 5 39 Fred Costs $ 40 Depreciation Expense (Bonus) 5 41 EBIT $ 42 -Taxes $ 43 Depreciation 5 46 Operating Cash Flow $ 45 46 5. Net Working Capital year 47 Balance $12,000 $ 48 change 49 Recovery SO NWC Cash Flow 51 Project FCF 52 Capital expenditure Cash Flow (106,000.00 53 Operatin Cash Flow 5 54 NWC Cash Flow SS Free Cash Flow 56 Met Present Value $142,142.92 57 TRR NUMI 58 MIRR NUMI 59 60 Use Net Present Value, RR and MIRR functions in Excel 231,525 5 243,101 115,7635 121.551 80,000 $ 30.000 5 35,763 5 41551 7,510 5 3.726 19.7505 23,8985 28,2525 32,825 Year 20.000 $ (8.000 5 year2 21.000 $ (1,000) 5 year 22.050 $ 11.050 $ years 23,153 $ 11.103) 5 5 (1,103) 5 24,310 11.158) 112,310) 23,153 18,000) 5 11.000) 11.050) 5 0 05.32,390.00 38 050 5 19,7505 23.8985 20.2525 32,825 18.000.001 5 11.000.0015 01.050.00 5 11.102.50 $ 2.152.50 30.060.00 5 18,750.00 5 22.147.50 5 27.149.88 $88367.49