Next year, National Beverage Company will increase its Plant, Property, and Equipment (PPE) by $4,000,000 with a

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Next year, National Beverage Company will increase its Plant, Property, and Equipment (PPE) by $4,000,000 with a plant expansion. The inventories will grow by 30%, accounts receivable will grow by 20%, and marketable securities will be reduced by 50% to help finance the expansion. If all other asset accounts remain the same and long-term debt will be used to finance the remaining costs of the expansion (no change in common stock or retained earnings), prepare a pro forma balance sheet for 2014. How much additional debt will be estimated using this pro forma balance sheet?

National Beverage Company Balance Sheet for the Year Ending 2013 Current Assets Cash $2,440,000 1,656,000 2,704,000 1.64
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