Given the following information and that contained in Problems 5 and 6, construct a forecast balance sheet as of June 30, 20X2, for the Central City Department Store. (Assume that accounts payable stay the same as at December 31, 20X1.)

Central City Department Store balance sheet at December 31, 20X1

ASSETS LIABILITIES AND EQUITY

Cash $100,000 Accounts payable $130,000

Accounts receivable 427,500 Bonds 500,000

Inventory 200,000 Common stock and

Fixed assets, net 250,000 retained earnings 347,500 $977,500 $977,500

Book: Fundaments of Financial Management - 13th Edition

Page: 199

Exercise #7