Garlington Technologies Inc.'s 2016 financial statements are shown below:

Balance Sheet as of December 31, 2016

Income Statement for December 31, 2016
Sales...............................................$3,600,000
Operating costs....................................3,279,720
EBIT................................................$ 320,280
Interest.................................................18,280
Pre-tax earnings...................................$ 302,000
Taxes (40%)..........................................120,800
Net income.........................................$ 181,200
Dividends..........................................$ 108,000
Suppose that in 2017 sales increase by 10% over 2016 sales and that 2017 dividends will increase to $112,000. Forecast the financial statements using the forecasted financial statement method. Assume the firm operated at full capacity in 2016. Use an interest rate of 13%, and assume that any new debt will be added at the end of the year (so forecast the interest expense based on the debt balance at the beginning of the year). Cash does not earn any interest income. Assume that the all-new debt will be in the form of a line of credit.

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Cash Receivables Inventories 180,000 Accounts payable 360,000 720,000 $360,000 156,000 0 180,000 Total current liabilities 696,000 1,800,000 204,000 Total liabilities and equity $2.700,000 Notes payable Line of credit Accruals Total current assets Fixed assets $1,260,000 1,440,000 Common stock Retained earnings Total assets