Company XYZ Balance Sheet (In Millions) Jan. 1 Dec. 31 Source Use ASSETS

Company XYZ Balance Sheet (In Millions) Jan. 1 Dec. 31

Source Use

ASSETS

Cash $25 $20 _____ _____

Mkt. Sec. 30 22 _____ ______

Acct. Rec. 50 60 _____ _____

Inventory 120 150 _____ ____

Total Curr. Assets $225 $252 _____ _____

Gross Fixed Assets $155 $170 _____ ___

Less: Accum. Dep. (47) (55) _____ _____

Net Fixed Assets $108 $115 _____ _____

Total Assets $333 $367

LIABILITIES

Accounts Payable $41 $35 _____ _____

Notes Payable 30 15 _____ ____

Other Liabilities 19 35 _____ _____

Long Term Debt 21 25 _____ ____

Total Liabilities $111 $110

OWNERS EQUITY

Common Stock $83 $83 _____ _____

Retained Earnings 139 174 _____ _____

Total Equity $222 $257

Total Liab. & OE $333 $367

During the year XYZ purchased an additional $15million worth of fixed assets. The charge for depreciation in 2000 was $8 million. In addition
earnings after tax amounted to 70 million and the company paid out 35 million in dividends. Based on the above information prepare a 2000 statement of cash
flows for XYZ.

2) The 1999 Balance Sheet for ABC Corporation is shown below:

Assets 1999 Liabilities 1999

Cash $10000 Accounts Payable $ 8000

Accounts Receivable 20000 Accruals 2000

Inventory 40000 Total Current Liabilities $10000

Total Current Assets $70000 Bonds $30000

Net Fixed Assets $150000 Total Liabilities $40000

Owners Equity

Common Stock $100000 Retained Earnings 80000

Total Assets $220000 Total Liab.& OE $220000

The firm is currently operating at 100% capacity with sales of $100000. Management believes that next year sales will increase by 10% and it
is anticipating that the firms profit margin will remain at 20%. The dividend payout for next year will be 45%. In the year 2000 what will the firms
additional funds needed be? (In answering this question you must prepare a pro forma balance sheet.)