Forecasting Legends' Balance Sheet as of 12/31/Current Year Cash Receivables Inventories $ 250,000 600,000 1,300,000 2,150,000 2,500,000 $ 4,650,000 Accounts Payable Accrued Liabilities Notes Payable Total Current Liabilities L/T Debt Total Current Assets PP&E $ 500,000 220,000 75,000 795,000 1,700,000 755,000 1,400,000 $ 4,650,000 Total Assets Common Stock Retained Earnings Toal Liab. & Equity Legends' Income Statement for the year ended 12/31/Current Year Sales Operating Costs EBIT Interest EBT Taxes $ 6,500,000 4,875,000 1,625,000 170,000 1,455,000 436,500 Net Income $ 1,018,500 7% Other data: Next years' sales are forecasted to increase by Legends operated at 100% capacity in the current year Additions to PP&E to support growth = Legends's dividend payout % will remain constant next year Operating costs will remain the same % of sales next year Share price $ Dividends paid $ Tax rate 78.00 203,700 30% $ 1,000,000 1) Forecast Legends' next years' Income Statement and Balance Sheet. Forecasting Legends' Balance Sheet as of 12/31/Current Year Cash Receivables Inventories $ 250,000 600,000 1,300,000 2,150,000 2,500,000 $ 4,650,000 Accounts Payable Accrued Liabilities Notes Payable Total Current Liabilities L/T Debt Total Current Assets PP&E $ 500,000 220,000 75,000 795,000 1,700,000 755,000 1,400,000 $ 4,650,000 Total Assets Common Stock Retained Earnings Toal Liab. & Equity Legends' Income Statement for the year ended 12/31/Current Year Sales Operating Costs EBIT Interest EBT Taxes $ 6,500,000 4,875,000 1,625,000 170,000 1,455,000 436,500 Net Income $ 1,018,500 7% Other data: Next years' sales are forecasted to increase by Legends operated at 100% capacity in the current year Additions to PP&E to support growth = Legends's dividend payout % will remain constant next year Operating costs will remain the same % of sales next year Share price $ Dividends paid $ Tax rate 78.00 203,700 30% $ 1,000,000 1) Forecast Legends' next years' Income Statement and Balance Sheet