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.

Question 16 (Mandatory) (5 points) What is the PLUG in 2020? 328 0 267 297