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You have available the Income Statement for 2018 and the Balance Sheet as of the fiscal year end 2018 for Anthony & Co. all dollar
You have available the Income Statement for 2018 and the Balance Sheet as of the fiscal year end 2018 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'a has no plans to expand its property -Anthony's 2019 sales are forecast to be $5,000; and, -Anthony's tax rate i 20%, Income Statement Sales Cost of Goods Sold Gross Profit Operating Expenses Interest Expense Net Income Before Taxes Provision for Taxes Net Income $4,000 3 000 $1,000 800 $ 160 $ 128 Balance Sheet Cash Inventory Property $ 80 400 600 1,080 200 $1,280 Accounts Receivable Current Assets Total Assets Notes Payable, Bank Accounts Payable Long-Term Debt, Current 240 360 20 Current Liabilities Total Liabilities Total Liabilities 620 160 $780 500 Long-Term Debt Net Worth & Net Worth $1,280 1. Use the percent of sales approach to estimate the amount of external financing Anthony & Co. will need by year-end 2019 2. Use the cash cycle approach to estimate the amount of external funding Anthony & Co. will need by year-end 2019. 3. Why are these two estimates different
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