Athleta Co expects that sales in 2020 will increase by 13 percent The company is planning to expand its operations to new cities in 2020 For the planned expansion Athleta Co recen ed $1,200 additional long-term loan from JP Morgan Chase and will use this loan to finance the purchase of a new office building Salaries are expected be $113 The market conditions will lead COGS will be 5 percent lower than the 2019 level When projecting the 2020 balance sheet, Athleta Co believed that the accounts receivable days will be 9 days higher than ACP days of 2019 Inventory days will remain unchanged from 2019 Accounts payable amount will remain unchanged from 2019 since the business has recently been rewarded with extended payment terms from its suppliers going forward Proforma net income will be $8+4. Current maturities of long-term debt (CMLTD), minimum cash ratio and dividend payments will remain same as in 2019 Tax rate is 14 percent Interest rate for long-term loan in 2020 is projected to be 2 percent. Interest expense on short term debt is delayed until 2021 (this means apply the interest rate only on long-term debt). Rental expense would be 54 per month Depreciation expense would be the same percentage of gross fixed assets as was in 2019 2018 2019 COME STATEMENT et sales 1,316 1,658 332 673 est of goods sold 90 1 00:00 INCOME STATEMENT Net sales Cost of goods sold Salaries Rental expenses Depr. Expense Interest expense Tax expense Net Income (loss) 2018 1,316 332 90 26 12 560 48 248 2019 1,658 673 100 18 30 338 71 428 BALANCE SHEET Cash Accounts receivable Inventory Total Current Assets GFA Accd depre Net fixed assets Total Assets Accounts payable Bank line of credit Current portion due on term loan Total Current Liabilities Long-term debt naal abilities 2018 26 72 85 183 1,138 110 1.028 1,211 39 o 70 109 875 984 2019 20 82 78 180 1,575 140 1.435 1,615 52 225 70 347 BOS 1. 00:00 What is proforma accounts payable in 2020? 28 59 52 30 Question 14 (5 points) Listen What is proforma dividends in 2020? 126 110 180 192 View hint for Question 14 vel income (105) 240 20 BALANCE SHEET Cash Accounts receivable Inventory Total Current Assets GFA Accd depre Net fixed assets Total Assets Accounts payable Bank line of credit Current portion due on term loan Total Current Liabilities Long-term debt Total Liabilities Total equity Total Liabilities and Equity 2018 26 72 85 183 1,138 110 1,028 1,211 39 0 70 109 875 984 227 1,211 2019 20 82 78 180 1,575 140 1,435 1,615 52 225 70 347 805 1,152) 463 1,615 INCOME STATEMENT Net sales Cost of goods sold Salaries Rental expenses Depr. Expense interest expense Tax expense Net Income (loss) 2018 1,316 332 90 26 12 560 48 248 2019 1,658 673 100 18 30 338 71 428 20 72 BALANCE SHEET Cash Accounts receivable inventory Total Current Assets GFA Accd depre Net fixed assets Total Assets Accounts payable Bank line of credit Current portion due on term loan Total Current Liabilities Long-term debt arch 2018 2019 26 82 85 78 183 180 1,138 1,575 110 140 1,028 1,435 1,211 1,615 39 52 0 225 70 70 109 3471 875 BOS 00:00 984 1,1521 a 1 2