SHOW ALL YOUR SUPPORTING CALCULATIONS! You may do this either within the cell by using formulas, or to the side or below -- clearly labeling your work. All your work must be shown on this sheet, not on a separate tab. 215 points: 5 for showing work, 10 for accuracy Compute Required New Funds (RNF) for each year (HINT: See Formula 4-1 in your Week 3 Chapter readings) \begin{tabular}{|l|l|l|l|l|} \hline & & & & \\ \hline \end{tabular} OPTIONAL: It would be very helpful to fill out the table below identifying the necessary variables before attempting to compute RNF. \begin{tabular}{|c|c|c|c|c|c|c|} \hline & & 2023 & 2024 & 2025 & 2026 & 2027 \\ \hline \multicolumn{7}{|c|}{A/S= Total Current Assets/Sales } \\ \hlineS & = Current Sales - Last year's Sales & & & & & \\ \hline \multicolumn{7}{|c|}{ L/S = Total Current Liabilities/Sales } \\ \hlineP & = Profit Margin (see 1a above!) & & & & & \\ \hline S2 & = Sales in the current yr & & & & & \\ \hline D & = Dividend Payout Ratio = Dividends & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|} \hline 1 & \begin{tabular}{l} The Sharks gave you the $1,000,000 in funding you requested in exchange for 25% ownership of your \\ company's profits. \end{tabular} \\ \hline 2 & \begin{tabular}{l} All the following are complete by March 31, 2023: 1) your shark funding has been received, 2) new \\ capital investments have been purchased and set up, and 3) additional labor has been hired and \end{tabular} \\ \hline 3 & \begin{tabular}{l} SELLING \& ADMINISTRATIVE EXPENSE: Use a 3-year average Percent-of-Sales to forecast S\&A expenses. \\ (HINT: Find what percent S\&A expense is for each of 2020, 2021, and 2022, and average the 3 results \\ together. Use the resulting average S\&A Percent-of-Sales to forecast S\&A into the future.) \end{tabular} \\ \hline 4 & \begin{tabular}{l} RENT EXPENSE: Rent expense is a fixed cost in the amount of $15,000 per year in 20202022, increasing \\ to $200,000 per year in 2023 . \end{tabular} \\ \hline 5 & \begin{tabular}{l} DEPRECIATION EXPENSE: Depreciation expense is a fixed cost in the amount of 10% of Plant \& \\ Equipment each year. \end{tabular} \\ \hline 6 & INTEREST EXPENSE: This is a Fixed cost, and is 10% of Long-term Liabilities. \\ \hline 7 & \begin{tabular}{l} TAXES: Because you live in a business-friendly State (Wyoming), you don't have to pay state taxes on \\ your LLC's income. You do, however, still have to pay Federal taxes. Also, in 2022, higher tax rates were \\ passed for the 2023 tax year, pushing income over $400,000 into the 39.6% tax bracket. Because of this, \\ use 36% as your effective tax rate. \\ (NOTE: If the taxes shown for 20202022 seem high, it's because you had income from another job that \\ threw your LLC income into a slightly higher tax bracket. However, you'll quit that job IF the sharks fund \end{tabular} \\ \hline \end{tabular} \begin{tabular}{|c|} \hline SECURITIES: Plan to keep Marketable Securities at 60% of Cash levels. \\ \hline \begin{tabular}{l} ACCOUNTS RECEIVABLE: Use a 3-year average Receivables Turnover ratio to forecast. (HINT: Find the \\ formula for Receivables Turnover (RTO) in your Week 2 Chapter readings, and solve for RTO for each of \\ 2020, 2021, and 2022. Average the 3 results together. Plug your Average RTO into the RTO formula for \\ each future year, along with your other known number from your financial statements, to find your \\ forecasted Accounts Receivable amounts. This is demonstrated in your Week 2 Lesson!) \end{tabular} \\ \hline \begin{tabular}{l} INVENTORY: Compute a 3-year average of inventory as a Percent-of-Sales, and then use that figure to \\ forecast inventory levels through 2027 . \end{tabular} \\ \hline \begin{tabular}{l} PLANT \& EQUIPMENT: There is a new capital expenditure of $750,000 dollars in 2023, paid for from the \\ $1M in funding from the sharks, rather than with new debt. (All capital expenditures are assumed to \\ occur on January 1st of the year of purchase, and no equipment is sold or salvaged during the forecasted \end{tabular} \\ \hline \begin{tabular}{l} ACCUMULATED DEPRECIATION: Each year, 10% of the total amount of Plant and Equipment is added to \\ the depreciation amount. \end{tabular} \\ \hline \begin{tabular}{l} ACCOUNTS PAYABLE: Use the 3-year average Current Ratio to forecast. (HINT: The Current Ratio will \\ help you forecast TOTAL Current Liabilities, not Accounts Payable. Find Total Current Liabilities and \\ Accrued Expenses first, and then you can solve for Accounts Payable.) \end{tabular} \\ \hline ACCRUED EXPENSES: Use the 3-year average Percent-of-Sales method to forecast. \\ \hline \\ \hline \end{tabular}