You have available the most recent Income Statement and the Balance Sheet as of the fiscal...

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You have available the most recent Income Statement and the Balance Sheet as of the fiscal year end for Anthony & Co.; all dollar amounts are in thousands. Note that: -Anthony's long-term debt is being reduced at the rate of $20 per year; and, -Anthony's has no plans to expand its property; -Anthony's sales for next year are forecast to be $5,000; -Anthony's tax rate is 20%. Income Statement Sales $4,000 Cost of Goods Sold Gross Profit 3,000 $1,000 Operating Expenses 800 Interest Expense 40 Net Income Before Taxes $ 160 Provision for Taxes 32 Net Income $ 128 Balance Sheet Cash $ 80 Accounts Receivable 400 Inventory 600 Current Assets 1,080 Property 200 Total Assets $1,280 Notes Payable, Bank 240 Accounts Payable 360 Long-Term Debt, Current 20 Current Liabilities 620 Long-Term Debt 160 Total Liabilities $780 Net Worth 500 Total Liabilities & Net Worth $1,280 1. Use the percent of sales approach to estimate the amount of external financing Anthony & Co. will need next year. 2. Use the cash cycle approach to estimate the amount of external funding Anthony & Co. will need next year. 3. Why are these two estimates different? You have available the most recent Income Statement and the Balance Sheet as of the fiscal year end for Anthony & Co.; all dollar amounts are in thousands. Note that: -Anthony's long-term debt is being reduced at the rate of $20 per year; and, -Anthony's has no plans to expand its property; -Anthony's sales for next year are forecast to be $5,000; -Anthony's tax rate is 20%. Income Statement Sales $4,000 Cost of Goods Sold Gross Profit 3,000 $1,000 Operating Expenses 800 Interest Expense 40 Net Income Before Taxes $ 160 Provision for Taxes 32 Net Income $ 128 Balance Sheet Cash $ 80 Accounts Receivable 400 Inventory 600 Current Assets 1,080 Property 200 Total Assets $1,280 Notes Payable, Bank 240 Accounts Payable 360 Long-Term Debt, Current 20 Current Liabilities 620 Long-Term Debt 160 Total Liabilities $780 Net Worth 500 Total Liabilities & Net Worth $1,280 1. Use the percent of sales approach to estimate the amount of external financing Anthony & Co. will need next year. 2. Use the cash cycle approach to estimate the amount of external funding Anthony & Co. will need next year. 3. Why are these two estimates different?