Task $5$:

Estimate a projected four$-$year Balance Sheet, based $on$ the above assumptions and the following additional

assumptions:

$*$ The Balance Sheet $at$ the end $of$ the year prior $to$ First Year was comprised asfollows: Cash $$50,000$;

Inventories $$1,000,000$; Gross Fixed Assets $$4,000,000$; Debt $$2,000,000$ and Owners Equity

$$3,050,000.$ You should assume all other prior period Balance Sheet values were zero.

$*$ Required cash $is$ estimated $tobe1\%of$ Sales.

$*$ The businessrequires capital expenditure $of$ $$500,000$ a yearin each ofthe first two years.

$*$ Assume the founder invests additional $$2,000,000in$ the firstyear.