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Using excel and showing all formulas. NO HANDWRITTEN RESPONSES. Specifically need assistance with Balance Sheet and the formulas utilized. ZEDO COMPANY - ADDITIONAL FINANCING NEEDED.

Using excel and showing all formulas. NO HANDWRITTEN RESPONSES. Specifically need assistance with Balance Sheet and the formulas utilized.

  1. ZEDO COMPANY - ADDITIONAL FINANCING NEEDED. Assume sales grow 40% in 2021 over 2020; the average collection period increases by 9 days in 2021 compared to 2020 (360 days in the year), inventory turnover based on sales decreases by 1 in 2021 compared to 2020, Zedo pays a constant percentage of Net Income as a dividend, and 2020 net fixed assets are operating at 90% of capacity.

INCOME STATEMENT

2020

2021

Net Sales

$800

Cost of Goods Sold

- 650

EBIT

$150

Interest Expense

-15

EBT

$135

Taxes @ 40%

-54

Net Income

$81

Dividends

$27

Additions to Retained Earnings

54

BALANCE SHEET - ASSETS

Cash

$50

Accounts Receivable

80

Inventories

100

Total Current Assets

$230

Net Fixed Assets

370

Total Assets

$600

LIABILITIES AND EQUITY

Accounts Payable

$60

Notes Payable

20

Accruals

20

Total Current Liabilities

$100

Long-term Debt

100

Common Stock

190

Retained Earnings

210

Total Liabilities and Equities

$600

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