After Chris completed the ratio analysis for S&S Air (see Chapter 3), Mark and Todd approached him about planning for next year's sales. The company had historically used little planning for investment needs. As a result, the company experienced some challenging times because of cash flow problems. The lack of planning resulted in missed sales, as well as periods when Mark and Todd were unable to draw salaries. To this end, they would like Chris to prepare financial plan for the next year so the company can begin to address any outside investment requirements. The income statement and balance sheet are shown here:

$49 AIR ING. 2014 Income Statement $40,259,230 Cost of goods sold 20.330 440 Other expenses 5.105,100 Doproclation 1,504,220 EBIT $ 4,013 464 Interest 030,520 Taxable Income $ 3.302,944 Taxios (40#) 1,353 178 Not Income 4 2.020.700 Dividends $ 010.000 Add to retained caming's 1.419.760 $US AIR, INC. 2014 Balance Sheet Liabilities and Equity Current boots Current Mobiltips Accounts payable $ 929,005 Accounts mothably 740.125 Inventory Notes payable 2.121.350 1 071 180 Told current assets Total current liabilities $ 3.050 359 1 2 202 740 Long-form dubt $ 5,500.000 Hit part and opponent Shareholder equity Common stock 400,000 Petrned gamings Tour oquilty 11.035 013 16 986, 170 Todd liabilities and oquity $11.435.615 410,900, 170