Please show all work so I can understand similar problems. Thanks
1. Suppose net income for the coming year is forecasted to be $1,634 and dividends are forecasted to be $657. After careful analysis, you determine asset needs for next year are
$48,824 and liabilities are expected to be $12,869. Owner's equity of the year just completed was $9,040. Calculate the additional funds needed or generated for the coming year.
2. Suppose that net cash flow from operating activities is expected to be $829 for the coming year and that net cash flow from investing activities is expected to be ($7,048). If the cash balance at the beginning of the forecast year was $1,222 and at the end of the forecast year it is expected to be $1,626, calculate net cash flow from financing activities for the forecast year.© BrainMass Inc. brainmass.com March 4, 2021, 6:18 pm ad1c9bdddf
1. The funds needed in the next year would be required for investing in the assets. As part of the investment would be generated by the increase in liabilities and the increase in retained earnings for the year ...
The solution addresses two problems - one dealing with calculation of external funds needed and second one with calculation of ending cash balance