1800

78

1260

160

18

284

99

185

93

92

Balance Sheet

400

800

1200

300

900

1200

The following tables contain financial statements for Dynastatics Corporation Although the company has not been growing, it now plans to expand and will increase net feed assets (le assets net of depreciation) by $200,000 per year for the next 4 years, and it forecasts that the ratio of revenues to total assets will remain at 150. Annual depreciation is 20% of net fixed assets at the beginning of the year. Fixed costs are expected to remain at $78 and variable costs at 70% of revenue. The company's policy is to pay out one-hall of net income as dividends and to maintain a book debt ratio of 20% of total capital INCOME STATEMENT, 2019 Figures in thousands) Revenue Fixed costs $1,500 28 Variable costs (70% of revenue) 1.260 Depreciation 160 Interest (6% of beginning-of-year debt) Taxable income 284 Taxes (at 35%) 99 Net Income 5 105 Dividends 393 Addition to retained earnings $92 nes BALANCE SHEET, YEAR END (Figures in thousands) Assets Het working capital Fixed assets Total Assets Liabilities and shareholders' tuity Debt Equity Total limbilities and shareholders' equity 3 000 5 1,200 5 300 900 51.200 a 1. Produce an income statement for 2020. Assume that net working capital will equal 50% of fixed assets 2. Produce a balance sheet for 2020. Assume that net working capital will equal 50% of fixed assets. b. Now assume that the balancing item is debt and that no equity is to be issued. Prepare a completed pro forma balance sheet for 2020. c. Assume that the balancing item is debt and that no equity is to be issued, what is the projected debt ratio for 2020? Complete this question by entering your