AFNA Use the following information to answer the next five questions: Suppose in 2021 Stevens Textile's sales are projected to increase by 6% over 2020 sales. Use forecasted financial statements method to develop a pro formal balance sheet and income statement for December 31, 2021 for Stevens Textile. Assume that 1) A new piece of equipment costing $10,000 will be purchased in 2021. Total depreciation on this equipment for 2021 will be $2,500. 2) That any required financing will be borrowed as notes payable. 3) That the dividend payout ratio remains constant 4) Use an interest rate of 7% to fulfill the additional need for funds. Income Statement for December 31, 2020 (in $1,000) Sales $36.000 Variable costs $32.440 Fixed Costs EBIT $3.560 DELL F6 FB F10 F17 Pet $ % 5 o & 7 w 6 7 Y 8 u com a 0 x E R 3 T Y C o p D. D C F ] G H. J K L * : M .) - C { B 3 NT V. 0 Alt Income Statement for December 31, 2020 (in $1,000) Sales $36.000 Variable costs $32,440 Fixed Costs EBIT $3.560 Interest $460 EBT $3.100 Taxes (40%) $1 240 Net Income S1.860 Dividends $8371 Add. To Retained Earnings $1,023 Stevens Textile Balance Sheet for December 31, 2020 (in $1,000) Cash $1.080 Receitablar 56 Asal DELL F4 F5 F6 F8 . F9 F10 $ 4 % 5 & 7 o 6 7 Y 8 9 E R Y U 19 hin of 9 o 4 D C F GS J J K C { V } B Y NT M. Stevens Textile Balance Sheet for December 31, 2020 (in $1,000) Cash $1,080 Receivables $6,480 Inventories $9,000 Total current assets $16,560 Net fixed assets $12,600 Total assets $29,160 Accounts payable $4,320 Notes payable $2.100 Accruals $2.880 Total current liabilities $9.300 Mortgage bonds $3,500 common stock $3,500 Retained earnings $12,860 Total liabilities & equity $29,160 Question 26 (1 point) DELL FS F6 F7 F8 F9 F10 F11 F12 $ % & 7 3 T 5 o 6 7 Y