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(10 points) Refer to the same financial statements for 2018. Assume that the firm wants to target days receivables of 60, inventory days of 145,

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(10 points) Refer to the same financial statements for 2018. Assume that the firm wants to target days receivables of 60, inventory days of 145, and payable days of 90. Furthermore, assume that sales will increase by 5%. Predict the 2019 balance sheet amounts for AR, AP, and inventory. Income Statement 2018 Sales 42.294 Cost of sales 13.509 SG&A 10.102 9.752 R&D Income before taxes 8,931 2.233 Taxes 6,698 Net income 1.608 Dividends paid Balance Sheet Assets Cash 7,965 AR 7,071 Inventories 5,440 Total current 20,476 PPE (net) 13,291 Other assets 7,554 Total 41,321 L&E Short-term debt 5,044 AP 3,318 Total current 8.362 Long-term debt 19.806 Equity 1.788 RE 11.365 Total equity 13.153 Total L&E 41.321

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