e scatorent 54,320 nagmentMandoleranti Problem 12-08 Financing Deficit Stevens Textile Corporation's 2016 financial statements are shown below: Balance Sheet as of December 31, 2016 (Thousands of Dollars) Cash $ 1.080 Accounts payable Receivables 6,480 Accruals 2,880 Inventories Line of credit Total current assets $16.560 Notes payable Net fared assets 12,600 Total current liabilities Mortgage bonds 3,500 Common stock 3.500 Retained earnings 12,360 Total assets Total abilities and equity $29,160 Income Statement for January 1 - December 31, 2016 (Thousands of Dollars) 9,000 $9,300 $29.160 Operating costs Earnings before interest and taxes $ 3.560 Interest Pre-tax warnings $ 3,100 Taxes (40%) Net income $1,860 Dividends (459) Addition to retained earnings $1,023 .. Suppose 2017 sales are projected to increase by 200 over 2016 sales. Use the forecasted inancial statement method to forecast a balance sheet and income t ant for December 31, 2017. The Interest rate on all debt is , and cash earns no interest income Assume that all additional debt in the form of a line of credit is added at the end of the year which means that you should be the forecasted interest expense on the balance of debt at the beginning of the year. Use the forecasted income statement to determine the action to retained earnings. Asume that the company was operating at capacity in 2016, that it cannot sell of any of its ed assets, and that any required financing will be borrowed as a line of credit assume that s p ontaneous a bes, and operating costs are expected to increase by the same percentage assesDetermine the adonar unde needed Round your answers to the nearest della Donat round intermediate calculations Total assets at Do not round intermediate calculations b. What is the resulting total forecasted amount of the line of credit Round your answer to the nearest Line of credits In your answers to Parts and you should not have charged any interest on the dominaldated during 2017 because it was sumed that the newest was