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You have available the Income Statement for 2016 and the Balance Sheet as of the fiscal year end 2016 for Anthony &Co.; all dollar amounts
You have available the Income Statement for 2016 and the Balance Sheet as of the fiscal year end 2016 for Anthony &Co.; all dollar amounts are in thousands. Note that: Anthony's long-term debt is being reduced at the rate of $20 per year; Anthony's has no plans to expand its property; Anthony's 2017 sales are forecast to be $5, 000; and, Anthony's tax rate is 20%. Income Statement Sales $4, 000 Cost of Goods Sold 3, 000 Gross Profit $1, 000 Operating Expenses 800 Interest Expense 40 Net Income Before Taxes $ 160 Provision for Taxes 32 Net Income $ 128 Balance Sheet Cash $ 80 Accounts Receivable 400 Inventory 600 Current Assets 1, 080 Property 200 Total Assets $ 1, 280 Notes Payable, Bank 240 Accounts Payable 360 Long-Term Debt, Current 20 Current Liabilities 620 Long-Term Debt 160 Total Liabilities $ 780 Net Worth 500 Total Liabilities & Net Worth $ 1, 280 Use the percent of sales approach to estimate the amount of external financing Anthony &Co. will need by year-end 2017. Use the cash cycle approach to estimate the amount of external funding Anthony &Co. will need by year-end 2017. Why are these estimates different
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