In 2015, Company ABC reported revenue of $1,000,000, gross profit of $300,000, operating income of $100,000, interest expense of $40,000, net income of $36,000, and addition to retained earnings of $21,600 in 2015 (after dividends of $14,400)

ABC also recorded current assets of $400,000, fixed assets of $200,000 and total assets of $600,000 on its balance sheet at the end of 2015; current assets consisted of $150,000 of accounts receivable and $250,000 of inventory. ABCs balance sheet at the end of 2015 also contained the following items: current liabilities of $200,000, long-term debt of $100,000 and stockholders equity of $300,000; current liabilities consisted of accounts payable of $120,000 and accrued payable of $80,000 while stockholders equity consisted of common stock of $200,000 and retained earnings of $100,000. As a result, the external financing needed (EFN) balance was 0

Revenues in 2016 are estimated to be $1,200,000. Forecast the 2016 income statement and balance sheet based on the following assumptions

All of costs of goods sold and $100,000 of operating expenses were variable in 2015

The remaining operating expenses as well all of the interest expense were fixed in 2015

The firm will maintain its 2015 tax rate and 2015 dividend payout ratio.

Current liabilities, current assets, and fixed assets are spontaneous

Long-term debt and common stock are discretionary