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Use the Income Statement and Balance Sheet below along with forecast assumptions to build a forecast of the 2020 financial statements and the Additional Funding

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Use the Income Statement and Balance Sheet below along with forecast assumptions to build a forecast of the 2020 financial statements and the Additional Funding Needed. Run the 2020 iterations until the balance sheet balances (this should be in four Income Statement 2019 2020 Assumptions 8,250 9 percent growth 6,600 75 percent of sales 1,650 Net Sales Cost of goods sold Gross profit Expenses General, seling, and administrative expenses Net interest expense Earnings before tax Tax Earnings after tax Dividends 1,238 15 percent of sales 179 8 percent interest 233 82 25 percent tax 152 30 25 percent dividend payout Balance Sheet 2019 Assets Current assets Cash and securities Accounts receivable Inventory Prepaid expenses Total current assets Net fixed assets Total assets 1,130 45 days sales 1,469 31 day collection period 825 5 times turnover 12 hold at 2019 level 3,436 250 10 depreciation per year 3,686 Liabilities and Owners' Equity Current liabilities Bank loan Accounts payable CMLTD Accrued wages Total current liabilities Long-term debt Common stock Retained earnings 4 1,732 plug, initially zero 940 25 days payable 10 LTD amortizing at 10 per year hold at 2019 level 2,686 500 LTD amortizing at 10 per year 100 hold at 2019 level 400 25 days payable LTD amortizing at 10 per year hold at 2019 level Accounts payable CMLTD Accrued wages Total current liabilities Long-term debt Common stock Retained earnings Total liabilities and owners' equity 940 10 4 2,686 500 100 400 3,686 LTD amortizing at 10 per year hold at 2019 level Use the Income Statement and Balance Sheet below along with forecast assumptions to build a forecast of the 2020 financial statements and the Additional Funding Needed. Run the 2020 iterations until the balance sheet balances (this should be in four Income Statement 2019 2020 Assumptions 8,250 9 percent growth 6,600 75 percent of sales 1,650 Net Sales Cost of goods sold Gross profit Expenses General, seling, and administrative expenses Net interest expense Earnings before tax Tax Earnings after tax Dividends 1,238 15 percent of sales 179 8 percent interest 233 82 25 percent tax 152 30 25 percent dividend payout Balance Sheet 2019 Assets Current assets Cash and securities Accounts receivable Inventory Prepaid expenses Total current assets Net fixed assets Total assets 1,130 45 days sales 1,469 31 day collection period 825 5 times turnover 12 hold at 2019 level 3,436 250 10 depreciation per year 3,686 Liabilities and Owners' Equity Current liabilities Bank loan Accounts payable CMLTD Accrued wages Total current liabilities Long-term debt Common stock Retained earnings 4 1,732 plug, initially zero 940 25 days payable 10 LTD amortizing at 10 per year hold at 2019 level 2,686 500 LTD amortizing at 10 per year 100 hold at 2019 level 400 25 days payable LTD amortizing at 10 per year hold at 2019 level Accounts payable CMLTD Accrued wages Total current liabilities Long-term debt Common stock Retained earnings Total liabilities and owners' equity 940 10 4 2,686 500 100 400 3,686 LTD amortizing at 10 per year hold at 2019 level

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