Given the income statements and balance sheets of Samsung Electronics Co. Ltd. From the previous problem (presented below). Prepare 2020s forecasted income statement and balance sheet using the percent of sales method assuming the following: A. Sales in 2020 are expected to be $250,000 B. The company decided to invest an additional $10,000 in a new equipment that has additional depreciation of $2,000 C. Other current assets and other current liabilities dont move with sales D. Tax rate for 2020 is 28%. The company is not expected to distribute dividends in 2020.

1. The forecasted COGS in 2020 is expected to be: *

a. $150,200

b. $104,367

c. $149,009

d. $151,299

e. None of the above

2. The forecasted net income in 2020 is expected to be: *

a. $21,609

b. $41,912

c. $35,677

d. $33,027

e. None of the above

3. The forecasted interest expense in 2020 before the elimination of DFN is expected to be: *

a. $709

b. $692

c. $899

d. $780

e. None of the above

4. The forecasted accounts receivable in 2020 is expected to be: *

a. $40,273

b. $39,900

c. $43,445

d. $42,114

e. None of the above

5. The forecasted inventory, for 2020 is expected to be: *

a. $26,667

b. $29,384

c. $29,990

d. $30,755

e. None of the above

6. The retained earnings account for 2020 is expected to be: *

a. $90,804

b. $123,831

c. $155,123

d. $80,300

e. None of the above

7. The forecasted accounts payable for 2020 is expected to be: *

a. $9,009

b. $9,103

c. $9,889

d. $8,043

e. None of the above

8. The discretionary financing needs (DFN) in 2020 is expected to be: *

a. Deficit $3,221

b. Surplus $3221

c. Deficit $39,975

d. Surplus $39,975

e. None of the above

9. Suppose that the company intends to eliminate its DFN in the investment in Land account, how much the amount of investment in land is expected to be after elimination: *

a. $8,873

b. $45,627

c. $52,069

d. $88,823

e. None of the above

Samsung Electronics Co. Ltd. Income Statement In million dollars 2019 Sales/Revenue 230,400 Cost of Goods Sold 151,017 Gross Profit 79,383 Selling and G&A Expenses 33.444 Research & Development 18,169 EBIT 27,770 Non Operating income/expense 277 Non Operating interest income 2,660 Interest Expense 692 Earnings Before Taxes 30,015 Taxes 8,404 Net Income 21,611 2018 243,771 135.277 108,494 32.688 16,918 58,888 112 2,297 674 58,214 16,300 41,914 Notes: Tax Rate 28% 28% 2018 100,939 36,948 28,984 13,675 180,546 279,158 163,741 115,417 43,775 339,738 Samsung Electronics Co. Ltd. Balance Sheet For the year ended at Dec 31, 2019 Assets 2019 Cash and Equivalents 108,779 Accounts Receivable 39,310 Inventory 26,766 Other Current Assets 13,833 Total Current Assets 188,688 Plant & Equipment 304,075 Accumulated Depreciation 184,250 Net Plant & Equipment 119,825 Investment in Land 48,848 Total Assets 357,361 Liabilities and Owner's Equity Accounts Payable 8,718 Short Term Debt 14,393 Current Portion of Long Term Debt 846 Other Current Liabilities 39,824 Total Current Liabilities 63,781 Long-term Debt 3,172 Deferred Taxes 21,348 Total Liabilities 88,301 Common Stock 22,897 Additional Paid-In Capital 155,359 Retained Earnings 90,804 Total Shareholder's Equity 269,060 Total Liabilities and Owner's Equity 357,361 8,479 13,586 33 46,981 69,079 1,047 18,776 88,902 20,897 137,444 92,495 250,836 339,738 Samsung Electronics Co. Ltd. Income Statement In million dollars 2019 Sales/Revenue 230,400 Cost of Goods Sold 151,017 Gross Profit 79,383 Selling and G&A Expenses 33.444 Research & Development 18,169 EBIT 27,770 Non Operating income/expense 277 Non Operating interest income 2,660 Interest Expense 692 Earnings Before Taxes 30,015 Taxes 8,404 Net Income 21,611 2018 243,771 135.277 108,494 32.688 16,918 58,888 112 2,297 674 58,214 16,300 41,914 Notes: Tax Rate 28% 28% 2018 100,939 36,948 28,984 13,675 180,546 279,158 163,741 115,417 43,775 339,738 Samsung Electronics Co. Ltd. Balance Sheet For the year ended at Dec 31, 2019 Assets 2019 Cash and Equivalents 108,779 Accounts Receivable 39,310 Inventory 26,766 Other Current Assets 13,833 Total Current Assets 188,688 Plant & Equipment 304,075 Accumulated Depreciation 184,250 Net Plant & Equipment 119,825 Investment in Land 48,848 Total Assets 357,361 Liabilities and Owner's Equity Accounts Payable 8,718 Short Term Debt 14,393 Current Portion of Long Term Debt 846 Other Current Liabilities 39,824 Total Current Liabilities 63,781 Long-term Debt 3,172 Deferred Taxes 21,348 Total Liabilities 88,301 Common Stock 22,897 Additional Paid-In Capital 155,359 Retained Earnings 90,804 Total Shareholder's Equity 269,060 Total Liabilities and Owner's Equity 357,361 8,479 13,586 33 46,981 69,079 1,047 18,776 88,902 20,897 137,444 92,495 250,836 339,738