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	Historical	Projected	Excess Financing
	Dec 31, 2021	Dec 31, 2022	Incorporated	Transfer column C numbers to Column D and then ADD the calculated AFN to D57.
ASSETS
Current Assets:
Cash	$9,000,000
Marketable Securities	$8,000,000
Accounts Receivable (gross)	$1,200,000
Less: Allowance for Bad Debts	$200,000			*NOTE: Do not just multiply this number by the sales increase. Think about how that number is created.
Accounts Receivable (Net)	$1,000,000
Inventory	$20,000,000
Prepaid Expenses	$1,000,000
Total Current Assets	$39,000,000
Plant and Equipment (gross)	$20,000,000
Less: Accumulated Depreciation	$9,000,000			*NOTE: Remember how depreciation works. One item goes UP while another goes DOWN by the same value.
Plant and Equipment (net)	$11,000,000
TOTAL ASSETS	$50,000,000			*NOTE: TOTAL ASSETS must match TOTAL LIABILITIES AND EQUITY on the balance sheet.
				However, in a projection (column C), our sales assumptions do not take into account financing.
LIABILITIES AND EQUITY				That difference is Additional Financing Needed (AFN) and must be added to make accounts balance.
Current Liabilities:				Remember, we're making a projection based ONLY upon items related to sales which is obviously leaving
Accounts payable	$12,000,000			out some things. (Like everything not color coded here!)
Notes Payable	$5,000,000
Accrued Expenses	$3,000,000
Total Current Liabilities	$20,000,000
L-T Debt (Bonds Payable, 5%, due 2025)	$20,000,000				Incorporate as new
Total Liabilities	$40,000,000				Long-term Debt
Common Stock (1,000,000 shares, $1 par)	$1,000,000
Capital in Excess of Par	$4,000,000
Retained Earnings	$5,000,000
Total Equity	$10,000,000
TOTAL LIABILITIES AND EQUITY	$50,000,000
	Question 2a. Excess Financing (Additional Funds Needed):
		(If AFN isn't $1,466,000, review how you got your numbers.)

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It looks like youre working on a financial modeling exercise in Excel Based on the text Im assuming ... View the full answer