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Use this table to answer this question (All are stated in million dollars) Quantum Inc. Balance Sheet 2020 2019 Quantum Inc. Balance Sheet 2020 2019
Use this table to answer this question (All are stated in million dollars) | |||||
Quantum Inc. Balance Sheet | 2020 | 2019 | Quantum Inc. Balance Sheet | 2020 | 2019 |
Cash and cash equivalents | 2,768 | 2,879 | Accounts payable | 8,022 | 7,251 |
Accounts receivable | 6,275 | 5,335 | Accruals | 9,290 | 8,559 |
Total inventories | 7,379 | 6,384 | Notes Payables | 9,981 | 8,472 |
Prepaid expenses | 5,548 | 4,184 | Long-term debt | 22,033 | 21,360 |
TOTAL CURRENT ASSETS | 21,970 | 18,782 | Other borrowings | 21,027 | 21,091 |
Net Property Plants (Net PPE) | 21,293 | 19,244 | Common stock+ paid in Cap | 58,134 | 58,134 |
Intangible assets | 95,091 | 90,146 | Retained earnings | 9,867 | 3,305 |
TOTAL ASSETS | 138,354 | 128,172 | TOTAL LIAB & EQUITY | 138,354 | 128,172 |
Quantum Inc. Income Statement | 2020 | 2019 | |||
NET SALES | 82,559 | 78,938 | |||
Cost of products sold | 40,768 | 37,919 | |||
Selling, general and administrative expense | 23,135 | 21,890 | |||
Depreciation expense | 2,838 | 3,108 | |||
OPERATING INCOME | 15,818 | 16,021 | |||
Interest expense | 629 | 974 | |||
EARNINGS BEFORE INCOME TAXES | 15,189 | 15,047 | |||
Income taxes | 3,392 | 3,360 | |||
NET INCOME | 11,797 | 11,687 | |||
Total Dividends Payments | 5,235 | 5,186 | |||
Suppose the expected growth of net sales for 2021 is 8%, calculate the Quantum Inc. Additional Fund Needed (AFN) for 2021 based on the 2020 status quo. Also, please carefully explain the meaning of the projected 2021 AFN that you calculated. |
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