Comprehensive Problem The accounting department of Whitelands, Inc. is forecasting its 2017 income statement and balance sheet at the end of 2016. The department compiled the following assumptions about 2017. 1. Whitelands will generate a 15% operating retum on total assets. 2. Inventory, accounts payable, and cost of goods sold will increase by 10% from their 2016 3. Sales revenue and accounts receivable will also increase by 10% from their 2017 amounts. 4. The firm will purchase land for $150,000 with funds borrowed from a bank at 10% interest. The land will be used for a future building site.) 5. Other operating expenses will increase to $650,000, due to a planned employee wage increase. 6. The income tax rate will remain at 40%. 7. Whitelands will pay a dividend of $50,000. 8. The accrued liabilities account will be used to balance the balance sheet. Required (1) Use the above information along with the 2016 financial statements (below) to forecast the 2017 income statement and balance sheet The dollar amounts are in thousands and rounded to the nearest thousand dollar amount). Income Statements 2017 2016 S2000 Sales revenue 200 Less: Cost of goods sold 800 Gross profit operating expenses: 100 Depreciation expense Other operating expenses 620 Income from operations so Interest (financing) expense 80 Pretax income Income tax expense (40%) Net income Balance Sheets 1213117 12131/16 Cash STO Accounts receivable, net Inventory Total current assets Property, Plant and Equipment Land 1000 Equipment (at cost) Less: accumulated depreciation Equipment, net of accumulated depreciation Total Assets 16