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1. The most recent financial information for Last in Line is: Sales $9,800 Costs 8,740 Net income 1,060 Assets 8,950 Debt 4,7

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Answer #1

To find out the external financing need of next year, we used the following approach

1) Understand the current financial position (Prepare P/L Account and Balance Sheet)

2) Calculate next year's amounts based on ratio given in question

3)Prepare next year's projected financial statements to find out the debt need.

Below are the details of calculation

Step 2: Calculate ratio and next years amounts based on Information given in question Step 1: Find the missing information I

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