The Great Service Cleaning and Maintenance Company requires a capital infusion of $200,000. It is currently a closely held corporation with less than 50 shareholders. Although the shareholders are not all related to each other, they all know each other and they view the business as a family business. Please refer to the financial statements availablebelow.

A number of alternatives are available to the company. It can:

• Obtain private debt financing
• Seek out a private investor(s) who would be willing to share ownership
• Seek out offers for a private buy-out
• Issue public debt (corporate bonds)
• Issue public common stock

Considering the size of the investment ($200,000) how does this impact the financial statements reviewed in Unit 1?

Balance Sheet Income Statement Sheeta ASSETS 2014 2013 CURRENT ASSETS Cash 456 5m) 111 400 Cash increase - due to no divide Receivables 1 936 400 3 120 am Inventory 89 800 100 200 Other assets 11'? 500 84 300 Total current assets 4 602 200 3 726 900 Current ratio 101:: 1.21 Current ratio 1014: 1.47 LONG TERM ASSETS Note Receivable 380 600 180 700 Some additional debt acquired Equipment (net of depreciation] 975 000 1 017 800 Total long ten'n assets 1 355 600 1 19B 500 TOTALASSETS 5 957 500 5 025 400 LIABILI11ES AND STOCKHOLDERS' EQUITY Debt ratio 201]: 0,? Debt ratio 1014: 0,6 CURRENT LIABILITIES Accounts payable 1 783 100 2 805 700 Note payable {current maturities) 171 550 172 550 Other accrued liabilities 165 300 114 600 Total current liabilities J 125 950 3 092 850 LONG TERM LIABILITIES Notea payable (long term] 354 am 354 300 Long term accrued liabilities 289 550 210 250 Total long term liabilities 644 350 575 050 TOTAL LIABILITIES 1 770 300 3 667 900 STOCKHOLDERS EQUITY Common stock 300 000 100 am Retained Earnings 1 ES? 5D 1 057 500 Total stockholders' equity 1 187 SUD 1 357 500 TOTAL LIABILITIES AND STOCKHOLDERS EQUITY 5 957 W0 5 015 400 Nothing selected. Seiect an ohiect In Format. | Balance Sheet Innntnetstawnent v_ Sheet?! 2014 201 3 Comments Service Contract Revenues 9 100 am) 6 295 4110 Increase it Service Contract Costs (7 503 100) [4 957 800) Gross Prot 1 196 Dan 1 331 mu Gross prof Gross prof General and Administrative Expenses (596 m0) (756 can) Operating Income 1 300 900 518 6110 Increase 2t Gain on sale of equipment 59 mo 1 Tan Interest expense [69 500) (70 800) Other expense [9 m0) [6: 1m) Income before taxes 1 281 700 455 400 Taxes {451 700) (300 900) Net Income B30 000 154 500 Increase El Retatned Earnings, Beginning Balance 1 057 500 1 053 000 1 BS? 500 1 207 500 Less: Dividends paid 0 {150 000) No divider Retained Earnings, Ending Balance 1 587 500 1 I157 500 )~ Nothing selected. Select an ohieot io Format