f 4273.5 B D E F G H 1 K Forecasting Exercise Using the information below, create a forecast for the next year using the modified percentage of sales method (except for income taxes). Remember how Balance Sheets & Income Statements are put together. Use your templates to help some numbers have been insertede to help Remember once you know Total Assets, you also know Total of Liabilities & Owner's Equity Directions/Assumptions No new stock was issued (carry across 16,920) Long-term debt should be used as the unknown amount needed to balance (provided) Sales are expected to grow by 10% The % of Cost of goods sold are estimated to be 61% of forecasted sales Cash will have no change (carry across 2850) Remember Assets = Liabilities + Owner's Equity Income Statement 56% 61% Sales Cost of Goods Sold = Gross Margin Operating Expenses = EBIT Income Taxes (37% of EBT Earnings after Taxes (EAT) Current Yr. $52,500 $29,250 $23,250 $12.750 $10,500 $3,885 $6,615 Forecast $57,750 $35,228 $22,522 $12.750 $11,550 $4,274 $26,885 Wuuu Earnings after Taxes (EAT) $6,615 $4,274 $26,885 Balance Sheet 3 4 5 $2,850 6 7 Assets + Cash + Accounts Receivable + Merchandise Inventory Total Current Assets + Long-Term Assets Total Assets 28 29 $2,850 $8,000 $4,350 $15,200 $9,500 $24,700 $2,850 30 $2,850 31 32 33 34 35 36 37 Liabilities & Owners Equity + Accounts Payable + Short-Term Debt Total Current Liabilities + Long-Term Debt + Common Stock Total Liabilities & Owner's Equity $3,100 $1,060 $4,160 $3,620 $16,920 $24,700 $0 $5,390 $16,920 $22,310 38 39 40 41 42 43 45 46 Sheet1