Question

Financing Deficit Stevens Textile Corporation's 2018 financial statements are shown below: alog $ 4,320 2,880 Balance Sheet as of December 31, 2018 (Thousands of Dollars) Cash $ 1,080 Accounts payable Receivables 6,480 Accruals Inventories 9,000 Line of credit Total current assets $16,560 Notes payable Net fixed assets 12,600 Total current liabilities Mortgage bonds Common stock Retained earnings Total assets $29,160 Total liabilities and equity ess 2,100 $ 9,300 3,500 3.500 12,860 $29,160 Income Statement for January 1 - December 31, 2018 (Thousands of Dollars) YOU Sales Operating costs Earnings before interest and taxes Interest Pre-tax earings Taxes (40%) Net Income Dividends (45%) Addition to retained earnings $36,000 32,440 $ 3,560 460 $ 3,100 1,240 $ 1,860 $ 837 $ 1,023 ds 04 d h e 50 ir salas lise the facechodnia stomat mother to forecast balances

Answer 1

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BOND - Microsoft Excel (Product Activation Failed) Add-Ins File Home Insert Page Layout Formulas Data Review View - 2x % Cut Σ AutoSum : A Calibri Dr General Fill Z Tu Wrap Text Fat Merge Merge & Center - Center BI U -11AA = = = D- DA E = 5 Font st $ $ % % , , .0 .00 :.: Insert Delete Format E Copy Paste Format Painter Clipboard IN204 Conditional Format Formatting as Table Styles Cell Styles 2 Clear Sort & Filter Editing Find & Select Alignment Number Cells IG IH IK IL IM 10 IP 189 190 191 192 STEVENS INCOME STATEMENT 193 194 195 196 197 198 199 200 SALES OPERATING COSTS EBIT INTEREST EBT TAX NET INCOME DIVIDEND (45%) ADDITION TO RETAINED EARNINGS 2018 2019 15% INCREASE 36000 41400 32440 37306 3560 4094 460 616 (11% OF (3500 + 2100 = MORTGAGE BOND + NOTES PAYABLE) 3100 3478 1240 1391 1860 2087 837 939 (45% DIVIDEND] 1023 1148 201 202 203 204 205 206 H Rea FORECASTED BALANCESHEET YIELD SPOT Sheet2 AFN BANKING NOTE 51 53 ferences: GC150 CLEAN PRICE 510 BIDDING, UNDERWRITING EUAC AW LIFELP, IP, MRP, INFLATION WARRANT refund 54 BO 55 56 I 140% EJENO 9 0 + 06:41 20-11-2019 * me ENG 10

BOND - Microsoft Excel (Product Activation Failed) Add-Ins File Home Insert Page Layout Formulas Data Review View - 2x % Cut Calibri Dr General -11AA = = = D- DA E E E Wrap Text FMerce Merge & Center - Center Σ AutoSum : A Fill 2 Sort & m Find & BI U s $ % % , 4.0 .00 :.: Insert Delete Format Conditional Format Formatting as Table Styles E Copy Paste Format Painter Clipboard IQ224 Cell Styles 2 Clear Filter Editing Select Font Alignment Number Cells IG IH L IKILIMIN 10 P Q R IS 205 206 FORECASTED BALANCESHEET TOTAL ASSETS TOTAL LIABILITIES & EQUITY 207 208 209 210 211 212 213 214 CASH RECEIVABLES INVENTORIES 2018 1080 6480 9000 2019 1242 15% INCREASE 7452 15% INCREASE 10350 15% INCREASE 2018 4320 2880 ACCOUNTS PAYABLE ACCRUALS LINE OF CREDIT NOTES PAYABLE 2019 4968 15% INCREASE 3312 15% INCREASE 2146 (BALANCING FIGURE) 2100 2100 215 NET FIXED ASSETS 12600 14490 15% INCREASE MORTGAGE BONDS COMMON STOCK RETAINED EARNINGS TOTAL 3500 3500 12860 29160 3500 3500 14008 (12860 + 1148) 33534 216 217 TOTAL 29160 33534 218 AFN $ 2,146 LINE OF CREDIT $ 2,146 219 220 ANS a 221 222 ANS b 223 224 225 HEM YIELD SPOT Sheet2 Rea ferences: FY395 AFN BANKING NOTE 51 53 CLEAN PRICE $10 BIDDING, UNDERWRITING EUAC AW LIFELP, IP, MRP, INFLATION WARRANT refund 54 55 56 0 BOU 120% 0 ELEB * * OENG 20-11-2019

BOND - Microsoft Excel (Product Activation Failed) Add-Ins File Home Insert Page Layout Formulas Data Review View - 2x % Cut . 1 - 7 Autosum - 7 A Insert Delete Format Cell Styles Fill 2 Clear Sort & Filter Editing Find & Select Cells ΠΗ 10 IP IQ IR IS Calibri -11AA = = = Dr Wrap Text General E Copy Paste B Format Painter I U - D A Merge & Center $ - % Conditional Format 8. Formatting as Table Clipboard Font Alignment Number Styles IG43 IG I D IK ILIM I N 34 35 ANSCIF DEBT IS ADDED THROUGH OUT THE YEAR RATHER THAN ONLY AT THE END OF THE YEAR 36 INTEREST EXPENSES WILL BE HIGHER THAN IN PROJECTIONS OF PART a 37 THIS WOULD CAUSE NET INCOME TO BE LOWER 38 THE ADDITION TO RETAINED EARNINGS TO BE LOWER 39 AND THE AFN TO BE HIGHER THUS YOU WOULD HAVE TO ADD IN NEW DEBT 41 42 NOTE : DROP DOWN MENU NOT AVAILBLE, SO USED OWN WORDS 43 44 45 40 46 47 48 49 50 51 52 53 54 HEM Rea AFN BANKING NOTE 51 53 CLEAN PRICE $10 BIDDING, UNDERWRITING EUAC AW LIFELP, IP, MRP, INFLATION WARRANT refund 0 YIELD SPOT Sheet2 ferences: 1998 54 55 56 0 BOJ 120% ELEB * * OENG 20-11-2019