2. It is January 1st, 2015. 2014 turned out very well for Oscar his projections were quite close. He wants you to project out an Income Statement, Balance Sheet and a Cash Flow Statement for 2015 using the new assumptions outlined below. (40 points.

1. 2015 year sales will each be 25% higher than the $110,000 realized in 2014
2. Gross margins in 2015 will be 55, 5% higher than the 50% realized in 2014
3. Operating margins will be 22%, 2% higher than 20% realized in 2014
4. Accounts Receivables will be 12% of sales, lower than the 15% seen in 2014
5. Inventory will be 15% of sales, higher than the 12% seen in 2014
6. Accounts Payable will be 4% of sales in 2015, lower than the 5% seen in 2014
7. Accrued expenses payable will be 4% of sales in 2015, lower than the 7% seen in 2014
8. The Bank of Connecticut will continue to be paid 8% interest on the $30,000 worth of loans.
9. The combined federal and provincial tax rates will be 30%
10. No new capital purchases are made
11. Closing cash is expected to remain at the same level predicted for and seen in 2014
12. Depreciation of existing capital equipment continues at the same rate observed in 2014