Question at the bottom reads: "Calculate AFN for year 3 and explain all of the funding decisions."
d Part. In Problems. (Weighted as marked.) Answer the following problems direct examination form. Show all your work Computations should be done on the blank hack wer the following problems directly on the previous page. A calculator may be used. Set up is important as partial credit will be con proper set up even if the correct answer is not reached. Use the back of the previous page calculatons and write your answers in the space provided. No credit will be given for a correct answer if the set up is not provided. 1. (15 points) Consider Invention Inc.'s early financial results below. Account 20X1 20X2 20x3 20X4 Cash Accounts Receivable Inventory Total Current Assets Fixed Assets Miscellaneous Assets Total Assets $100,000 $100,000 300,000 600,000 600.000 1.200,000 1,000,000 1,900,000 450,000 450,000 50.000 50.000 $1,500,000 $2,400,000 $100,000 1.200,000 2.400.000 3,700,000 1,450,000 50,000 $5,200.000 $100,000 2,400.000 4.800,000 7,300.000 2,450,000 50,000 $9,800,000 $900,000 1,500,000 $900,000 4,550,000 Notes Payable Accounts Payable Total Current Liabilities Long Term Debt Total Liabilities Net Worth Total L&E $0 300,000 300,000 o 300,000 1,200,000 $1,500,000 $0 1,000,000 1,000,000 0 1,000,000 1.400,000 $2.400,000 2,400,000 1,000,000 3,400,000 1.800,000 $5,200,000 5,450,000 1,750,000 7,200,000 2,600,000 $9.800,000 Net Sales Cost of Sales Gross Profit Operating Expenses Operating Profit Interest Profit Before tax Taxes (40%) Net Profit $3,600,000 $2,400,000 $1,200,000 $1,033,333 $166,667 $0 $166,667 $66,667 100,000 $7,200,000 $4,800,000 $2,400,000 $2,066,667 $333,333 $0 $333,333 $133,333 200,000 $14,400,000 $9,600,000 $4,800,000 $4,008,333 $791,667 $125,000 $666,667 $266,667 400,000 $28,800,000 $19,200.000 $9,600,000 $8,081,667 $1,518,333 $185,000 $1,333,333 $533,333 800,000 a. Calculate AFN for year 3 and explain all of the funding decisions. Show calculations clearly on the back of the preceding page. d Part. In Problems. (Weighted as marked.) Answer the following problems direct examination form. Show all your work Computations should be done on the blank hack wer the following problems directly on the previous page. A calculator may be used. Set up is important as partial credit will be con proper set up even if the correct answer is not reached. Use the back of the previous page calculatons and write your answers in the space provided. No credit will be given for a correct answer if the set up is not provided. 1. (15 points) Consider Invention Inc.'s early financial results below. Account 20X1 20X2 20x3 20X4 Cash Accounts Receivable Inventory Total Current Assets Fixed Assets Miscellaneous Assets Total Assets $100,000 $100,000 300,000 600,000 600.000 1.200,000 1,000,000 1,900,000 450,000 450,000 50.000 50.000 $1,500,000 $2,400,000 $100,000 1.200,000 2.400.000 3,700,000 1,450,000 50,000 $5,200.000 $100,000 2,400.000 4.800,000 7,300.000 2,450,000 50,000 $9,800,000 $900,000 1,500,000 $900,000 4,550,000 Notes Payable Accounts Payable Total Current Liabilities Long Term Debt Total Liabilities Net Worth Total L&E $0 300,000 300,000 o 300,000 1,200,000 $1,500,000 $0 1,000,000 1,000,000 0 1,000,000 1.400,000 $2.400,000 2,400,000 1,000,000 3,400,000 1.800,000 $5,200,000 5,450,000 1,750,000 7,200,000 2,600,000 $9.800,000 Net Sales Cost of Sales Gross Profit Operating Expenses Operating Profit Interest Profit Before tax Taxes (40%) Net Profit $3,600,000 $2,400,000 $1,200,000 $1,033,333 $166,667 $0 $166,667 $66,667 100,000 $7,200,000 $4,800,000 $2,400,000 $2,066,667 $333,333 $0 $333,333 $133,333 200,000 $14,400,000 $9,600,000 $4,800,000 $4,008,333 $791,667 $125,000 $666,667 $266,667 400,000 $28,800,000 $19,200.000 $9,600,000 $8,081,667 $1,518,333 $185,000 $1,333,333 $533,333 800,000 a. Calculate AFN for year 3 and explain all of the funding decisions. Show calculations clearly on the back of the preceding page
