to Financial Management Balance Sheet LIABILITIES a EQUITY Accounts payable ASSETS Accruals Cash Accounts receivable Inventory Current assets Fixed assets Current liabilities 6,247 2,468 $ 10,286 Capital Debt $25,608 Equity (14,936) Gross Accumulated depreciation $ 10,672 $ 12,390 $20,958 Net Total assets Total $20,958 Atanagement has made the following planning assumptions: INCOME STATEMENT Revenue will grow by 10%. The cost ratio will improve to 3796 of revenues. Expenses will be held to 44% of revenues. BALANCE SHEET The year end cash balance will be $1.5 million. The ACP will improve to 40 days from the current 60. a Inventory turnover will improve to 7 X from q, Trade payables will continue to be paid in 45 days. New capital spending will be $5 million. Newly purchased assets will be depreciated over 10 years using the straight-line method tahq a full year's depreciation in the first year. The company's payroll will be $13.7 million at the end of 20X2. No dividends or new stock sales are planned. The following facts are also available: The firm pays 10% interest on all of its debt. The combined state and federal income tax rate is a flat 40%. The only significant payables come from inventory purchases, and product cost is Existing assets will be depreciated by $1,727,000 next year. The only significant accrual is payroll. The last day of20X2 will be one week after a Forecast owl's income statement and balance sheet for 20X2. Round all calculations to the