Question
Use this table to answer this question (All are stated in million dollars) Edge Corp. Balance Sheet 2020 2019 Edge Corp. Balance Sheet 2020 2019
Use this table to answer this question (All are stated in million dollars)
Edge Corp. Balance Sheet | 2020 | 2019 | Edge Corp. Balance Sheet | 2020 | 2019 | |||
Cash and cash equivalents | 2,768 | 2,879 | Accounts payable | 8,022 | 7,251 | |||
Short-term investment sec. | 954 | 1,029 | Accruals | 9,290 | 8,559 | |||
Accounts receivable | 5,321 | 4,306 | Notes Payables | 9,981 | 8,472 | |||
Total inventories | 7,077 | 6,384 | Long-term debt | 22,033 | 21,360 | |||
Prepaid expenses | 5,548 | 4,184 | Other borrowings | 21,027 | 21,091 | |||
TOTAL CURRENT ASSETS | 21,970 | 18,782 | TOTAL LIABILITIES | 70,353 | 66,733 | |||
Net Property Plants (Net PPE) | 21,293 | 19,244 | Common stock+ paid in Cap | 58,134 | 58,134 | |||
Other long-term assets | 95,091 | 90,146 | Retained earnings | 9,565 | 3,305 | |||
TOTAL ASSETS | 138,052 | 128,172 | TOTAL LIAB & EQUITY | 138,052 | 128,172 | |||
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| Edge Corp. Income Statement | 2020 | 2019 |
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| NET SALES | 82,559 | 78,938 |
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| Cost of products sold | 40,768 | 37,919 |
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| Selling, general and administrative expense | 23,135 | 21,890 |
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| Depreciation expense | 2,838 | 3,108 |
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| OPERATING INCOME | 15,818 | 16,021 |
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| Interest expense | 629 | 974 |
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| EARNINGS BEFORE INCOME TAXES | 15,189 | 15,047 |
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| Income taxes | 3,392 | 3,360 |
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| NET INCOME | 11,797 | 11,687 |
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| Total Dividends Payments | 5,537 | 5,186 |
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Suppose the expected growth of net sales for 2021 is 10%, calculate the Edge Corp. Additional Fund Needed (AFN) for 2021 based on the 2020 status quo. Also, please explain the meaning of the Additional Fund Needed (AFN) for 2021 that you calculated to the firm.
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