Ehsan Karim 5819006

Assignment on Chapter 17

Assets Liabilities and Owners Equity

Current Assets 21 Accounts Payable 5.25
Fixed Assets 94.5 Notes Payable 20
Long-term Debt 40
Common Stock 35
Retained Earnings 10.84
AFN 4.41
Total Assets 115.5 Total L&E 115.5

Addition Fund Required (AFN)

1.
(A*/S15) (S16 – S15)
= (110/80) x (84 – 80)
= 5.5 MB

2.
(L*/S15) (S16 – S15)
= (5/80) x (84 – 80)
= 0.25 MB

3.
M (S15) (1 – DPO)
= (0.05) x (84) x (1 – 0.8)
= 0.84 MB

So AFN will be 5.5 – 0.25 – 0.84 = 4.41

(Answer)