ABC Company Balance Sheet Actual December 31, 2019 (in $000"s) Assets Liabilities & Shareholders' Equity Cash $ 40,000 Accounts payable (days 35) $ 9,200 Accounts receivable (days 90) 46,850 Long-term debt 30,800 Inventory (days 50) 13, 150 Buildings and equipment 150,000 Accumulated amortization- Buildings and equipment (50,000) Common shares 100,000 Retained earnings 60,000 $200,000 $200,000 ABC Company Forecasted Balance Sheet December 31, 2020 (in $000's) Assets Liabilities & Shareholders' Equity Cash $ 9,300 Accounts payable (days 47) $ 13,000 Accounts receivable (days 95) 52,000 Long-term debt 42,000 Inventory (days 50) 13,700 Buildings and equipment 205,000 Accumulated amortization- Buildings and equipment (55,000) Common shares 100,000 Retained earnings 70,000 $225,000 $225,000 During 2020, ABC Company (ABC) is expected to have a net income of $20,000,000 and has a 50% dividend payout ratio. The company desires to have a minimum cash level of $10,000,000. This goal was 5% of its 2019 total assets. Cash has not been adjusted in the forecast for 2020. Depreciation and amortization of $5,000,000, new equipment purchases of $55,000,000 and interest expense of $2,000,000 was included in the 2020 forecast. The condensed income statements for forecasted 2020 and actual 2019 are as follows (in $000's): 2020 2019 Sales $200,000 $190,000 Cost of sales (variable COGS) ( 80,000) ( 76,000) Fixed costs in COGS (incl. Dep)_( 20,000) ( 20,000) Other Fixed costs (incl. Interest)_(60,000) ( 60,000) Taxes (20.000) ( 16.000 Net income $ 20.000 $ 18.000