Touro College Business Department Corporate Finance Spring 2022 EBF-220-ON Dr. Menahem Rosenberg, CFA . Answer all the questions. Your work must be printed. Exercise 1 * 1. The Skywalker Industries has incorporated and started operations in 2019; it went public in 2020 with a common stock, preferred stock, rolling over commercial paper (short term note) and additional bond offerings. The following financial information has been gathered on the last day of the year, December 31, 2020. 2020 2019 Sales 10,000,000 Cost Of Goods Sold - % of sales 70% SG&A 1,200,000 Depreciation (%) Tissued Short term Commercial Paper 2New Debt Issued Interest Rate on borrowed funds 3Common Stock Issued $ Shares Issued 10% Preferred Share Sold at par Cash Receivable Inventory 4Property, Plant & Equipment (PPE) - cost Payables 20% 20.00% 200,000 90,000.00 900,000 100,000.00 10% 10% 2,000,000 100,000.00 40,000 10,000.00 1,000,000 50,000.00 1,200,000 1,600,000 70,000.00 4,000,000 250,000.00 1.800.000 30,000.00 0.00 220,000 120,000 8% Current (paid)Taxes Common Dividend rate Preferred Dividend Rate 1- short term notes are borrowed for one period and are paid off in the following period. 2- long term debt is borrowed for more than one period. 3- newly issued in that year 4 - bought that year 5- The company also bought back 4,000 shares at $50 per share average price 6- Current stock market price is $60 You will find it better to do this exercise in Excel. The data and the initial model financial statements are provided in an Excel file. The model has a lot of missing components, you need to complete it while you add the data. Prepare the Rogue Industries financial statements. The balance sheet basic structure and a partial income statement are given in Excel file. You need to finish the income statement to obtain the 2020 retained earnings. Similarly, you need the cash flow statement to get the 2020 cash level