a) (10 pts) From the financial planning data in table 1 complete the missing information in year 3 of the P&l statement in table 2B. TABLE 2B . S EG AN INDUSTRIES-PRomr AND Loss. 'VtARS INCOMES AND ENPENSES YEAR EARI EAR 2 Operating Revenues and Erpenses Operating Revenues 750 Merchandise Return 6) Total Operating Revenues Cost of goods and services (COGS $150 28.893 S178 General Administranve (GA) 5746.39 Tetal Operating Espense Operating Income Non-Operating revenues and Espenses Non-Operating Revenues( and Expenses $12.000 Total Non-Operating Income Net Profit (Less) Before Taxes Income Tazes 191,103 557,781.9 Net Profit After Taxes Depreciation: .Total Operating Expense: .Operating Income: .Net Profit (loss) before taxes 3 pts) (1 pts) (1pts) (1 pts) (3 pts) (1 pts) Income Tax: .Net Profit (Loss) after taxes (5 pts) The economy is projected to have inflation rate of 3% per year. From the financial data, determine the after tax cash flow in actual dollar ATCFIAS) in current year and the after tax cash flow in real dollar ATCFIRS) in year 0 dollars: b) YR. ATCF (AS)ATCF (R$) (5 pts) If the rate of return of this business is low, it may turn the investor or the bank away. Is it proper for the team to inflate market revenue forecasts and profit margin to show growth to obtain loan from the bank and attract investors to invest into the company? Page 4 of 5 d) (20 pts) From the financial planning data in table 1 and the completed the P&L statement in table 28, complete ABLE 3B-SMEGGAN INDUSTRIES-BALANCE SHEET-3YEARS urrent assets year 3 of the balance sheet in table 38 ASSETS YEAR YEAR 1 YEAR YEAR 3 5335,000 50 5400,000 5562,215 50 Cash Inventories $335,000 $400.000 $562 215 Total current assets Fixed assets 565,000 21.005 565,000 550557 565,000 Acc $65,000 543.336 S14,443 Total fixed assets Other Assets $100,000 $100,000 $100,000 $100,000 000001-1 si00 000 sio Total other assets TOTAL ASSET S100,000 5500,000 5543.336 $676,661 LIABILITES Current liabilities (Short term) Accounts paryable Notes payable S0 so 30 50 so Total curreat liabilities ong-term liabilities S0 5100,000 $100,000 $100,000 S100,000 5100,000 $100,000 Bank Notes TOTAL LIABILITY $400,000 5400,000 543,336 $400,000 S176,661 Common stock Retained earnings 5400,000 5500,000 $443,336 $543.336 5576,661 $676,661 TOTAL EQUn rOTAL LIABILITY AND EQUm'-> AR ITEMS ANSWER ITEMS ANSWER ash (2 pts) otal Current Asset (1 pt.) quipment (2 pts) ccumulated depreciation otal Fixed Asset (1) tal Asset (2pts) Notes Payable (1pt) Total Current Liability (2pts) Common Stock (2pts) Retain Earnings (2pts) Total equity (1pt Total Liability and Equity 1pt) a) (10 pts) From the financial planning data in table 1 complete the missing information in year 3 of the P&l statement in table 2B. TABLE 2B . S EG AN INDUSTRIES-PRomr AND Loss. 'VtARS INCOMES AND ENPENSES YEAR EARI EAR 2 Operating Revenues and Erpenses Operating Revenues 750 Merchandise Return 6) Total Operating Revenues Cost of goods and services (COGS $150 28.893 S178 General Administranve (GA) 5746.39 Tetal Operating Espense Operating Income Non-Operating revenues and Espenses Non-Operating Revenues( and Expenses $12.000 Total Non-Operating Income Net Profit (Less) Before Taxes Income Tazes 191,103 557,781.9 Net Profit After Taxes Depreciation: .Total Operating Expense: .Operating Income: .Net Profit (loss) before taxes 3 pts) (1 pts) (1pts) (1 pts) (3 pts) (1 pts) Income Tax: .Net Profit (Loss) after taxes (5 pts) The economy is projected to have inflation rate of 3% per year. From the financial data, determine the after tax cash flow in actual dollar ATCFIAS) in current year and the after tax cash flow in real dollar ATCFIRS) in year 0 dollars: b) YR. ATCF (AS)ATCF (R$) (5 pts) If the rate of return of this business is low, it may turn the investor or the bank away. Is it proper for the team to inflate market revenue forecasts and profit margin to show growth to obtain loan from the bank and attract investors to invest into the company? Page 4 of 5 d) (20 pts) From the financial planning data in table 1 and the completed the P&L statement in table 28, complete ABLE 3B-SMEGGAN INDUSTRIES-BALANCE SHEET-3YEARS urrent assets year 3 of the balance sheet in table 38 ASSETS YEAR YEAR 1 YEAR YEAR 3 5335,000 50 5400,000 5562,215 50 Cash Inventories $335,000 $400.000 $562 215 Total current assets Fixed assets 565,000 21.005 565,000 550557 565,000 Acc $65,000 543.336 S14,443 Total fixed assets Other Assets $100,000 $100,000 $100,000 $100,000 000001-1 si00 000 sio Total other assets TOTAL ASSET S100,000 5500,000 5543.336 $676,661 LIABILITES Current liabilities (Short term) Accounts paryable Notes payable S0 so 30 50 so Total curreat liabilities ong-term liabilities S0 5100,000 $100,000 $100,000 S100,000 5100,000 $100,000 Bank Notes TOTAL LIABILITY $400,000 5400,000 543,336 $400,000 S176,661 Common stock Retained earnings 5400,000 5500,000 $443,336 $543.336 5576,661 $676,661 TOTAL EQUn rOTAL LIABILITY AND EQUm'-> AR ITEMS ANSWER ITEMS ANSWER ash (2 pts) otal Current Asset (1 pt.) quipment (2 pts) ccumulated depreciation otal Fixed Asset (1) tal Asset (2pts) Notes Payable (1pt) Total Current Liability (2pts) Common Stock (2pts) Retain Earnings (2pts) Total equity (1pt Total Liability and Equity 1pt)