1.) Your company has sales of $ 90, 700 this year and cost of goods sold of $ 63,500. You forecast sales to increase to $ 111,700 next year. Using the percent of sales method, forecast next year's cost of goods sold. The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career. The forecasted cost of goods sold (COGS) is $____. (Round to the nearest dollar.)

3.) Jim's Espresso expects sales to grow by 10.2 % next year. Assume that Jim's pays out 84.1 % of its net income. (Use the following statements ) and the percent of sales method to forecast: a. Stockholders' equity b. Accounts payable The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career. a. Stockholders' equity The new stockholders' equity will be $____. (Round to the nearest dollar.)

Income Statement Balance Sheet Sales $ 198 , 740 Assets Costs Except Depreciation ( 99 , 210 ) Cash and Equivalents $ 14 comma 940 EBITDA $ 99 , 530 Accounts Receivable 2 ,100 Depreciation ( 5 ,960 ) Inventories 3 ,970 EBIT $ 93 ,570 Total Current Assets $ 21, 010 Interest Expense (net) ( 260 ) Property, Plant, and Equipment 10 ,100 Pre-tax Income $ 93, 310 Total Assets $ 31,110 Income Tax ( 32, 659 ) Net Income $ 60, 651 Liabilities and Equity Accounts Payable $ 1, 400 Debt 3, 940 Total Liabilities $ 5 , 340 Stockholders' Equity 25, 770 Total Liabilities and Equity $ 31,110