There are some mistakes in the video. The Year 2 long-term debt should be the same as that of Year 1 ($3,650).
For Year 2, total liabilities and equity SHOULD NOT be equal to total assets ($13,225).
As Year 2 Long-term debt is $3,650, thus total liabilities and equity for Year 2 should be calculated as
$2,415.00 + $3,650 + $6,159.86 = $12,224.86
And, External Financing Needed (EFN) should be calculated as below.
External Financing Needed
= Projected total assets – Projected total liabilities and equity
= Year 2 total assets from the projected balance – Year 2 total liabilities and equities from the balance sheet
= $13,225 – $12,224.86 = $1,000.14
Ending equity can also be calculated as below.
Ending Equity
= Beginning Equity + Addition to retained earnings
= Beginning Equity + (Net Income – Dividends)
= $5,750 + ($683.10 - $273.24)
= $6,159.86
Extracted text:
Extracted text: What is the internal growth rate?