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1. Sales Costs Tax rate Assets Current Assets Cash Debtors Inventory Non-Current Assets PP&E Total Assets 600 100 1400 Retained Earnings 900 Dividends 0.3 Liabilities/Equity Current Liabilities 460 Creditors 540 Short Term Notes 600 Non-Current Liabilities 2000 Debentures 3600 Owner's Equity Retained Profits Ordinary Shares 900 1000 1000 3600 Percentage of Sales Approach – Assume all spontaneous variables move as a percentage of sales. a) Given an expected increase in sales of 12%, what is the amount of external| funding required? b) To maintain the current debt/equity ratio how much debt and how much equity is required? c) Assuming the company is only operating at 95% capacity, how much new funding (if any) is required?

2.Seamus rented an office building to Chip for $2,000 per month. On December 29, 2018, Seamus received a deposit of $3,000 in addition to the first and last months' rent. Occupancy began on January 2, 2019. On July 15, 2019. Chip closed his business and filed for bankruptcy. Seamus had collected rent for February, March, and April on the first of each month. Seamus had received May rent on May 10, but collected no payments afterwards. Seamus withheld $900 from the deposit because of damage to the property and $1,000 for unpaid rent. He refunded the balance of the deposit to Chip. Requirement What amount would Seamus report as gross income for 2018? for 2019? Begin by selecting the labels to show the items that will comprise Seamus's 2018 gross income, and then enter the amounts to compute the 2018 gross income amount. (If an input field is not used, leave the input field(s) empty; do not select a label or enter a zero.) Taxable item 2018 Gross income Total gross income
April rent Damages Deposit February rent First month's rent Last month's rent March rent May rent Unpaid rent