1. Sales projection 2. Gross profit Exercise 3 Libby's Ltd. (Projected Statements) 3. This year's ending inventory 4. This year's age of ending inventory 5. Other operating expenses 6. Income tax 7. Accounts payable 8. Accounts receivable 9. Income tax payable $750,000 20% of sales $150,000 90 days, based on cost of goods sold 8% of sales 25% of net income before tax 40 days' purchases 10 days' sales 30% of year's taxes $30,000 10. Landat cost 11. Buildings and fixtures- - at cost fixtures, at end of this year $90,000 12. Accumulated depreciation - building and $21,000 13. Depreciation expense for the year 14. Common stock $6,000 $100,000 15. Retained earnings (estimated) at the end of $75,000 this year 16. Salary expense 17. Dividends 18. Bank loan (or cash) Assignment $42,000 25% of net income after tax Plug The above data have been supplied to you by the owner of Libby's Ltd., a retail firm. 1. Prepare a projected income statement for the next year. 2. Prepare a projected balance sheet as at the end of next year. 3. The sales manager disagrees with the owner's sales projections. She believes sales will be $1,000,000. Prepare another set of projections using the sales manager's estimates