6-1: Use the information below to answer questions:

Income Statement Balance Sheet

December 31, 2015 December 31, 2015

(in thousands) (in thousands)

Sales $40,000 Assets:

COGS 18,200 Total Current Assets $100,000

21,800 Net Plant & Equipment 70,000

Total Assets $170,000

Selling Expenses 4,000

Depreciation 3,000 Liabilities & Equity:

Fixed Expenses 4,000 Accounts Payable $40,000

Notes Payable 10,000

EBIT 10,800 Accrued Expenses 10,000

Taxes (40%) 4,320

Bonds Payable 40,000

Net Income 6,480 Common Stock 40,000

Paid-in-Surplus 20,000

Common Stock Div. 1,200 Retained Earnings 10,000

$ 5,280

Total Liabilities & Equity $170,000

Sales for 2016 are projected to be $60,000; the firm currently uses straight line depreciation. No new equipment purchases are planned for 2016. There will be a 10% earnings distribution for 2016. Notes Payable will be paid off at the end of 2015.

Forecast total assets for 2016 and forecast additional funds needed in 2016.