16. (Percentage of sales-full projection) A company- published the following financial statements in its 2019 annual report Income Statement For the year ended December 31, 2019 Sales $ 500,000 - Cost of goods sold 350,000 Gross profit 150,000 - Operating expenses $ 75,000 Depreciation 20,000 95,000 EBIT 55,000 - Interest expense 20,000 EBT 35,000 - Tax expense 7,350 EAT $ 27.650 - Dividends 10,000 Addition to retained earnings $ 17.650 Balance Sheet December 31, 2019 Cash $ 25,000 Marketable securities 10,000 Accounts receivable 50,000 Inventories 85,000 Plant, net 200,000 Total assets $ 370,000 Accounts payable $ 60,000 Accrued payables 35,000 Bonds payable 140,000 Common stock 105,000 Retained earnings 30,000 Total liabilities and equity $ 370,000 Sales in 2020 are estimated to be $650,000. Forecast the 2020 income statement, balance sheet and state- ment of cash flow assuming: (1) cost of goods sold, $30,000 of the operating expenses, and depreciation expense are variable; (2) the remainder of operating expenses is fixed; (3) cash, accounts receivable, inven- tories, net plant, accounts payable, and accrued payables are spontaneous; (4) marketable securities, bonds payable, and common stock are discretionary; (5) $10,000 of bonds payable are current and will be repaid at the beginning of the year; and (6) the firm will maintain its 2019 dividend payout ratio in 2020