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Following is the balance sheet for the end of the year 2018 for Silver Spurs, Inc.:...

Following is the balance sheet for the end of the year 2018 for Silver Spurs, Inc.:

                                                                 2018 2019

            Current Assets                            $15,000    _______________

            Net Fixed Assets                           20,000     _____________________________

            Total Assets                                $35,000 __________________

            Accounts Payable                        $ 2,000     ________________

            Notes Payable                                1,000    ________________

            Long-Term Debt                          10,000      ________________

            Common Equity                     22,000     

            Total Liabilities/Equity              $35,000 __________________

   AFN    _________________

            They have generated sales for 2018 of $35,000 resulting in net income of $15,000.

Due to the difficulty associated with acquiring raw materials, Silver Spurs has experienced sluggish business that has caused fixed assets to be underutilized.

Management thinks it can double sales in 2019 through the introduction of a new product.

No new fixed assets will be required and the dividend payout ratio will be 100%.

Assume no additional deprecation expense will be taken in 2019.

    Assume notes payable at the end of 2018 are paid off in 2019.

  Project next year’s balance sheet in the space provided above to determine the additional funding needed (AFN) for this new product.

   NOTE: Fixed assets do NOT include Current Assets.

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