Should louie plan on for his business in 2017

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Reference no: EM131972053

Louie is forecasting his financial statements for next year. He is finished with his income statement, but needs your help on his balance sheet. Based on the following information, How much additional financing (borrowing) or excess financing should Louie plan on for his business in 2017?

Louie does not anticipate selling any stock in 2017.

A. 2000 Excess

B. 2000 Borrowing Needed

C. 1000 Excess

D. 1000 Borrowing Needed

Income Statement	Pro-Forma 2017	Balance Sheet	2016	Pro-Forma 2017
Sales	100,000	Current Assets	5,000	6,000
Less: COGS	80,000	Net Fixed Assets	6,000	5,500
Gross Profit	20,000	Total Assets	11,000	11,500
Less: Operating Expenses	5,000
EBT	15,000	Current Liab	8,000	7,500
Less: Taxes @40%	6,000	Owner's Eq	3,000
Net Profit After Tax:	9,000	Total Liab & Owner's Eq	11,000
Dividends Paid	6,000

Reference no: EM131972053

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