1. You are planning for retirement. Use the following information to answer the question.
   1. The expected inflation rate from now until retirement is expected to be 2.5%.
   2. Your current income/expenses are $100,000 and that is the same standard of living you will have in retirement. To estimate expenses, you can take the average of the first year in retirement and last year in retirement and assume that is the value for each year in retirement.
   3. You can expect to earn 5% on your money in retirement.
   4. You are 35 when you graduate and expect to work until you are 65.
   5. Your life expectancy is 87.
   6. You will leave your heirs $1,000,000 upon your death.

How much will you need at retirement if you assume that the amount you will spend in retirement is the average of the first and last years expenses in retirement?

7. Assume that you withdraw the expenses at the beginning of each year of retirement.

Assets: Cash Accounts Receivable Inventory Total Current 2020 2019 $ 163 $ 154 $ 550 $ 455 $ 569 $ 450 $ 1,282 $ 1,059 Balance Sheet Liab+Eq: Acc Payable Accruals Total Current $ $ $ 2020 2019 266 $ 100 150 $ 150 416 $ 250 Income Statement 2020 Sales $ 1,753 Cost of Goods Sold $ 900 Depreciation $ 90 Operating Income $ 763 350 Long-Term Debt Total Liab $ $ 296 $ 712 $ 600 $ 82 Net Fixed Assets Total Assets $ 1,739 $ 1,400 $ 3,021 $ 2,459 Interest Expense Pre-tax Income $ 681 212 Taxes Net Income $ $ 469 Common @ Par $ Capital Surplus $ Retained Earnings $ Treasury Stock $ Total Eq $ Total Liab & Eq $ 55 $ 45 585 $ 494 1,729 $ 1,370 (60) $ (50) 2,309 $ 1,859 3,021 $ 2,459 $ 110 Dividends Addition to RE's $ $ 359