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Income Statement for period ending December 31, 2017 Sales $36.000 Operating costs $30,783 EBIT $5.217 Interest $717 EBT $4,500 Taxes (40%) $1,800 Net Income $2.700
Income Statement for period ending December 31, 2017 Sales $36.000 Operating costs $30,783 EBIT $5.217 Interest $717 EBT $4,500 Taxes (40%) $1,800 Net Income $2.700 Dividends (60%) $1.620 Balance Sheet as of December 31, 2017 Cash SI 800 Receivables $10,800 Inventories $12,600 Total current assets S25,200 Net Fixed Assets $21,600 Total assets 546.800 Accounts payable Accruals Line of credit Notes payable Total Current liabilities Mortgage bonds Common stock Retained earnings Total liabilities and Equty $7,200 $2,520 SO $3.472 $13,192 $5,000 $2,000 $26.608 $46,800 Suppose 2018 sales are projected to increase by 25% over 2017 sales. Use the forecasted financial statement method to forecast a balance sheet and income statement for December 31, 2018. The interest rate on all debt is 10%, and cash eams no interest income. Assume that the company will not sell off any of its fixed assets or purchase any new fixed assets. Create the 2018 proforma. Document must contain your formulas
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