Athleta 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 received $1,700 additional long-term loan from J.P. 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 10 percent lower than the 2019 level.
• When projecting the 2020 balance sheet, Athleta believed that the accounts receivable days will be 7 days higher than ACP days of last vear.
• Inventory days will remain unchanged from 2019
• Accounts payable dollar amount will remain unchanged from 2019 since the business has recently been rewarded with extended payment terms from its suppliers going forward
• Current maturities of long-term debt (CMLTD), minimum cash ratio (i.e. Cash/NS) and dividend payments will remain same as in 2019.
• Tax rate is 14 percent.
• Proforma Net Income will be $794.
• Interest rate for long-term loart in 2020 is projected to be 4 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 $6 per month.
• Depreciation expense would be the same percentage of gross fixed assets as was in 2019.

What is proforma COGS in 2020? 1,0031,049606766 What is proforma accumulated depreciation in 2020? 130 100 333 202 What is proforma annual rental expenses in 2020? 66 72 6 48