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QUESTION FOUR (20 MARKS) Piri's dive shop had the following 2019 results: - Sales =$7,200 - Costs =$6,100 - Assets =$18,000 - Debt =$8,000 -

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QUESTION FOUR (20 MARKS) Piri's dive shop had the following 2019 results: - Sales =$7,200 - Costs =$6,100 - Assets =$18,000 - Debt =$8,000 - Equity =$10,000 Forecasted sales for 2020 are $8,500. There are no taxes. Assets and costs are proportional to sales. Debt and Equity are not. The retention rate is 100%. What is the AFN (additional funds needed) in 2020 to support forecasted sales of $8,500 ? (Hint: Construct the 2020 balance sheet and find the AFN required to make the balance sheet balance. Also, assume spontaneous liabilities are unchanged from 2019 to 2020 .)

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