17-3. (Using the percent-of-sales method of forecasting) Tulley Appliances, Inc., projects next year's sales to be $20 million. Current sales are at $15 million, based on current assets of $7 million and fixed assets of $8 million. The firm's net profit margin is 5 percent after taxes. Tulley forecasts that current assets will rise in direct proportion to the increase in sales but that fixed assets will increase by only $150,000. Currently, Tulley has $1.5 million in accounts payable (which vary directly with sales), $7 million in long-term debt (due in 10 years), and common equity (including $4 million in retained earnings) totaling $6.5 million. Tulley plans to pay $500,000 in common stock dividends next year. INCOME STATEMENT current year % of sales next year % of sales sales net income dividends BALANCE SHEET current % of sales next year % of sales year current assets net fixed assets TOTAL ASSETS accounts payable long-term debt TOTAL LIABILITIES common stock/paid-in capital retained earnings COMMON EQUITY TOTAL LIABILITIES & OE