Question 1. Below are the financial information of the FM corporation in 2018 and

2019. Answer the following questions.

(1) Calculate the cash flow from assets, cash flow to creditors, and cash flow to

shareholders in 2019. Assume that tax rate given as 21%. Also, keep in mind that total

equity is equal to total asset total liabilities

(2) Suppose sales will increase 20% next year. What is the external finance needed (EFN)

of next year? Assume that the dividend payout ratio of next year is same with that of

2019.

Accounts Sales Cost of Goods Sold Other expenses(SG&A) Depreciation Interest Dividend 2018 5,600 4,000 520 250 200 200 2019 4,900 3,500 330 300 120 200 2018 2,100 Accounts Cash Account Receivable Inventory Current Assets Net fixed assets 2,540 4,520 9,160 9,480 2019 1,950 2,860 6,100 10,910 10,250 Short-term notes payable Accounts payable Current Liabilities Long-term debt 500 3,230 3,730 4,010 400 3,520 3,920 5,100