Part 2 Part Use the information from your forecast to calculate the sources and uses once you get your balance sheet to balance-typically in iteration number 4. Part 2 is worth 5 points. Sources of Cash Begin with net income and depreciation. Any asset that declines or liability that increases will be a source of cash. Sum total sources of cash. Ti Total sources of cash Uses of Cash Any asset that increases or liability that declines will be a use of cash. Sum total uses of cash. Total uses of cash External funding required The difference between sources and uses of cash equal the external funding required, aka Additional Funding Needed (AFN) in your textbook. The company plans to spend $55 on new fixed assets and has a depreciation expense of $25. Start with Oin bank loan for first iteration. Hold amortization of debt principle constant at $100 and keep accrued wages constant Long-term debt amortizes by 100 each year. No new common stock is issued nor repurchased. Use BASE for retained earnings. Plug your balance in to the next iteration's bank loan if this value is positive. If negative, subtract from bank loan. Once bank loan is zero, add to marketable securities. Part 2 Part Use the information from your forecast to calculate the sources and uses once you get your balance sheet to balance-typically in iteration number 4. Part 2 is worth 5 points. Sources of Cash Begin with net income and depreciation. Any asset that declines or liability that increases will be a source of cash. Sum total sources of cash. Ti Total sources of cash Uses of Cash Any asset that increases or liability that declines will be a use of cash. Sum total uses of cash. Total uses of cash External funding required The difference between sources and uses of cash equal the external funding required, aka Additional Funding Needed (AFN) in your textbook. The company plans to spend $55 on new fixed assets and has a depreciation expense of $25. Start with Oin bank loan for first iteration. Hold amortization of debt principle constant at $100 and keep accrued wages constant Long-term debt amortizes by 100 each year. No new common stock is issued nor repurchased. Use BASE for retained earnings. Plug your balance in to the next iteration's bank loan if this value is positive. If negative, subtract from bank loan. Once bank loan is zero, add to marketable securities