Use this table to answer this question ( All are stated in million dollars) Quantum Inc. Balance
Question:
Use this table to answer this question (All are stated in million dollars)
Quantum Inc. Balance Sheet | 2020 | 2019 | Quantum Inc. Balance Sheet | 2020 | 2019 | |||
Cash and cash equivalents | 2,768 | 2,879 | Accounts payable | 8,022 | 7,251 | |||
Accounts receivable | 6,275 | 5,335 | Accruals | 9,290 | 8,559 | |||
Total inventories | 7,379 | 6,384 | Notes Payables | 9,981 | 8,472 | |||
Prepaid expenses | 5,548 | 4,184 | Long-term debt | 22,033 | 21,360 | |||
TOTAL CURRENT ASSETS | 21,970 | 18,782 | Other borrowings | 21,027 | 21,091 | |||
Net Property Plants (Net PPE) | 21,293 | 19,244 | Common stock+ paid in Cap | 58,134 | 58,134 | |||
Intangible assets | 95,091 | 90,146 | Retained earnings | 9,867 | 3,305 | |||
TOTAL ASSETS | 138,354 | 128,172 | TOTAL LIAB & EQUITY | 138,354 | 128,172 | |||
Quantum Inc. Income Statement | 2020 | 2019 | ||||||
NET SALES | 82,559 | 78,938 | ||||||
Cost of products sold | 40,768 | 37,919 | ||||||
Selling, general and administrative expense | 23,135 | 21,890 | ||||||
Depreciation expense | 2,838 | 3,108 | ||||||
OPERATING INCOME | 15,818 | 16,021 | ||||||
Interest expense | 629 | 974 | ||||||
EARNINGS BEFORE INCOME TAXES | 15,189 | 15,047 | ||||||
Income taxes | 3,392 | 3,360 | ||||||
NET INCOME | 11,797 | 11,687 | ||||||
Total Dividends Payments | 5,235 | 5,186 | ||||||
Suppose the expected growth of net sales for 2021 is 8%, calculate the Quantum Inc. Additional Fund Needed (AFN) for 2021 based on the 2020 status quo. Also, please carefully explain the meaning of the projected 2021 AFN that you calculated.