Carson's Ltd. (Projected Statements) 1. Sales projection $750,000 2 Gross prot 20% of sales 3 This year's ending inventory (estimated) $150,000 4. This year's age of ending inventory 90 days, based on cost of goods sold 5. Other operating expenses 8% of sales 6 Income tax 25% of net income before tax 7 Accounts payable 40 days' purchases 8. Accounts receivable 10 days' sales 9. Income tax payable 30% of year's taxes 10. Land at cost $30,000 11. Buildings and fixtures at cost $90,000 12. Accumulated depreciation -- building and $21,000 fixtures, at end of this year 13. Depreciation expense for the year $6,000 14. Common stock $100,000 15. Retained earnings (estimated) at the end of $75,000 this year 16. Salary expense $42,000 1?. Dividends 25% of net income after tax 18. Bank loan (or cash) Plug Assignment The above data have been supplied to you by the owner of Carson's Ltd, a retail rm. 1. Prepare a projected income statement for the next year. 2. Prepare a projected balance sheet as at the end of next year. 3. The sales manager disagrees with the owner's sales projections. She believes sales will be $1,000,000. Prepare another set of projections using the sales manager's estimates