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2022 year sales will be 25% higher than the $110,000 realized in 2021 Gross margins in 2022 will be 55%, 5% higher than the 50%
- 2022 year sales will be 25% higher than the $110,000 realized in 2021
- Gross margins in 2022 will be 55%, 5% higher than the 50% realized in 2021
- Operating margins will be 22%, 2% higher than 20% realized in 2021
- Accounts Receivable will be 12% of sales, lower than the 15% seen in 2021
- Inventory will be 15% of sales, higher than the 12% seen in 2021
- Accounts Payable will be 4% of sales in 2022, lower than the 5% seen in 2021
- Accrued expenses payable will be 4% of sales in 2022, lower than the 7% seen in 2021
- The Bank will continue to be paid 4% interest on the $50,000 worth of loans
- The combined federal and provincial tax rates will be 30%
- No new capital purchases are made
- Closing cash is expected to remain at the same level predicted for and seen in 2021
- Depreciation of existing capital equipment continues at the same rate observed in 2021
It is January 1st, 2022. 2021 turned out very well for your friend - the projections were quite close. You are now being asked to project out an Income Statement, Balance Sheet and a Cash Flow Statement for 2022 using the new assumptions outlined below. (8 marks)
Please create an Income Statement, Balance Sheet and a Cash Flow Statement for 2022
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