Given the following historical information from ABC Company ABC Company Income Statement For the years ended December 31, 2014 2014 ASSETS Current Assets Cash Accounts Receivable Inventories Other Current Assets Total Current Assets Non-current Assets Property, plant and equipment, net Other noncurrent assets Total non-current assets Total assets Net Sales Cost of Sales Gross Profit Operating Expenses Operating Income Interest Expense Income before taxes Taxes Net Income ABC Company Balance Sheet December 31, 2014 5,250,000 4,305,000 945,000 314,750 630,250 250,000 LIABILITIES AND EQUITY Current Liabilities 1,060,000 Notes payable (external funds needed) 2,300,500 Trade payables 4,850,000 Income taxes payable 1,050,000 Current portion of long-term debt 9,260,500 Other current liabilities 380.250 114,075 266,175 i. Cost of Sales il. Variable Operating Expense iii. Depreciation expense Total Current Liabilities 2,440,000 Non current liabilities 835,689 Long-term debt, net of current portion 3.275,689 Total liabilities 12,536,189 Stockholder's Equity Capital Stock Retained Earnings Total SHE Total Liabilities and SHE Net amount of Property, Plant and Equipment 5,050,000 28,520 2,250,000 85.600 7,414,120 2,000,000 9.414,120 1,000,000 2.122,069 a. Sales are expected to increase by 10% in 2015 from the 2014 sales level. This growth assumption is based on the assessment of the external and internal factors related to the company and the historical growth of the company. the company's sales grew by 10.3% annually from 2010 to 2014. Compute for projected sales 3,122,069 12,536,189 b. The company wants to maintain the same gross profit per year as 2014. Variable operating expense is 5% of sales. Depreciation expense is 5% of the gross beginning balance of property, plant and equipment As of December 31. 2014, the gross balance of PPE is P5,200,000. For January 2015, P1.000.000 worth of new PPE will be acquired.. It is the policy of the company that PPE acquired in the first half of the year will be depreciated for one full year. Compute for: