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Financing Deficit Garlington Technologies Inc.'s 2015 financial statements are shown below: Suppose that in 2016 sales increase by 20% over 2015 sales and that 2016
Financing Deficit Garlington Technologies Inc.'s 2015 financial statements are shown below: Suppose that in 2016 sales increase by 20% over 2015 sales and that 2016 dividends will increase to $172,000. Forecast the financial statements using the forecasted financial statement method. Assume the firm operated at full capacity in 2015. Use an interest rate of 9%, and assume that any new debt will be added at the end of the year (so forecast the interest expense based on the debt balance at the beginning of the year). Cash does not earn any interest income. Assume that the all new debt will be in the form of a line of credit. Round your answers to the nearest dollar. Do not round intermediate calculations
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