3 H 4 5 6 Directions/Assumptions No new stock was issued (carry across 16,920) Long-term debt should be used as the unknown amount needed to balance. (provided) Sales are expected to grow by 10%. The % of Cost of goods sold are estimated to be 61% of forecasted sales. Cash will have no change. (carry across 2850) Remember: Assets = Liabilities + Owner's Equity 7 8 9 10 11 Income Statement 12 13 Forecast 14 56% 61% $0 15 16 17 Sales Cost of Goods Sold = Gross Margin Operating Expenses = EBIT Income Taxes (37% of EBT = Earnings after Taxes (EAT) Current Yr. $52,500 $29,250 $23,250 $12.750 $10,500 $3,885 $6,615 18 $0 $0 $26,885 Balance Sheet 19 20 21 22 23 24 25 26 27 $2,850 Assets + Cash + Accounts Receivable + Merchandise Inventory Total Current Assets + Long-Term Assets Total Assets $2,850 $8,000 $4,350 $15,200 $9,500 $24,700 $2,850 28 29 30 $2,850 31 32 33 34 35 Liabilities & Owners Equity + Accounts Payable + Short-Term Debt Total Current Liabilities + Long-Term Debt + Common Stock Total Liabilities & Owner's Equity = $3,100 $1,060 $4,160 $3,620 $16,920 $24,700 36 $0 $5,390 $16,920 $22,310 37 38 39