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Global Corp. expects sales to grow by 7 % next year. Using the percent of sales method and the data provided in the given tables,

Global Corp. expects sales to grow by 7 % next year. Using the percent of sales method and the data provided in the given tables, forecast: a. Costs except depreciation b. Depreciation c. Net income d. Cash e. Accounts receivable f. Inventory g. Property, plant, and equipment h. Accounts payable (Note: Interest expense will not change with a change in sales. Tax rate is 26%.)

Income Statement ($ million)

Balance Sheet ($ million)

Net Sales

185.4185.4

Assets

Costs Except Depreciation

negative 174.1174.1

Cash

23.723.7

EBITDA

11.311.3

Accounts Receivable

18.418.4

Depreciation and Amortization

negative 1.31.3

Inventories

15.115.1

EBIT

1010

Total Current Assets

57.257.2

Interest Income (expense)

negative 7.77.7

Net Property, Plant, and Equipment

112.9112.9

Pre-tax Income

2.32.3

Total Assets

170.1170.1

Taxes

(2626%)

negative 0.60.6

Net Income

1.71.7

Liabilities and Equity

Accounts Payable

35.535.5

Long-Term Debt

113.4113.4

Total Liabilities

148.9148.9

Total Stockholders' Equity

21.221.2

Total Liabilities and Equity

170.1170.1

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