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a through g (all apart of the same question) Jim's Espresso expects sales to grow by 9.7% next year. Using the following statements and the
a through g (all apart of the same question)
Jim's Espresso expects sales to grow by 9.7% next year. Using the following statements and the percent of sales method, forecast: a. Costs b. Depreciation c. Net Income d. Cash e. Accounts receivable f. Inventory g. Property, plant, and equipment (Note. Make sure to round all intermediate calculations to at least five decimal places.) The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career. A B Income Statement Sales $194,450 Costs Except Depreciation (99,070) EBITDA $95,380 Depreciation (6,050) EBIT $89,330 Interest Expense (net) (330) Pretax Income $89,000 Income Tax (22,250) Net Income $66,750 A B 1 Balance Sheet 2 Assets 3 Cash and Equivalents $14,930 4 Accounts Receivable 1940 5 Inventories 4100 6 Total Current Assets $20,970 7 Property, Plant and Equipment 9940 8 Total Assets $30,910 9 10 Liabilities and Equity 11 Accounts Payable $1,400 12 Debt 3980 13 Total Liabilities $5,380 14 Stockholders' Equity 25530 15 Total Liabilities and Equity $30,910 16 e Step by Step Solution
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