$1,000 FIXeD $200 r ncrease b r $300 t SUMLIN Ine. Balance Sheet December 31, 20x1 Cash Accounts receivable (net) Other current assets. Long-term assets 0x2 gre dition o 10 year $90 225 45.. $750+a5o 150 600 -$360 1000 Less: Accumulated depreciation Total assets.? 5960 Accounts payable Mortgage payabl. Common stock... Retained earnings. $180 360 $540 $200 220 420 Total liabilities and equities 5960 SUMLIN, Inc. Income Statement For the Year Ending December 31, 20X1 Revenues Expenses. CICo 480 $1,600 1,200 erable' 5oO Net Income.. Other information: a. Revenues for 20X2 are expected to increase by 20%. b. Fixed expenses will increase from $400 to $500: the remaining expenses will continue 580 to vary directly and proportionally with revenues. c. Accounts receivable at December 31, 20X2 are expected to increase by an amount equal to 10% of 20X2 revenue. d. Sumlin plans a fixed (long-term) asset addition on January 1, 20X2 with a cost of $250. All fixed (long-term) assets have a useful life of 10 years, are depreciated on a straight-line basis and have no anticipated salvage value e. Accounts payable at December 31, 20X2 are expected to decrease by an amount equal to 20% of total expenses