ington Technologies corpo e TIT) Chapter Nine Mini Case: FINANCIAL FORECASTING Garlington Technologies, Inc. Possible Points: 5 Name: Garlington Technologies' 2019 income statement is shown in the Excel file posted to the "Content" link at our course Web site, under the "Chapter Nine" heading. "Notes Payable" of $156 (amount in thousands) appears on Garlington's 2019 balance sheet. Garlington's management has made the following projections and assumptions for 2020: 1) 2020 sales are projected to increase by 10% over their 2019 level. 2) 2020 dividends will increase to $112 (amount in thousands). 3) An interest rate of 8 percent applies in 2020 to the debt balance ("Notes Payable" at the beginning of the year) Construct the projected 2020 income statement using the forecasted financial statement" (FFS) method. Assume the firm operated at full capacity in 2019. Please enter the numerical values for the 2020 projected income statement, along with your assumptions, into the Excel template file found at the "Content" link at our course Web site. 1 Type here to search O * E . AutoSave Om Chapter Nine_Mini_Case_Garington A Taiwajay14@gmail.com sa File Data Home Insert Draw Arial - 10 - BIU ' ' a-A- Page Layout Formulas == General E $ - % *8-21 Review View Help Conditional Formatting Format as Table Cell Styles Insert - Delete Format Share 2 - - - 0. Idea Peste Clipboard 5 Font Alignment Number Styles Cells Editing Ideas 111 X A B D E F G 2 3 4 5 Garlington Technologies, Inc. Pro Forma Income Statement For the Year Ended December 31, 2020 (Thousands of Dollars) Projected 2020 Forecast Basis 112 Net Income - Dividends 7 % of 8 2019 Sales 9 Sales 3,600 10 Operating Costs 3,279 11 Earnings Before Interest & Taxes (EBIT) 321 12 Less: Interest Expense 18 13 Earnings Before Taxes (EBT) 303 14 Less: Taxes 21% 64 15 Net Income 239 16 Less: Dividends 108 17 Addition to Retained Earnings 131 18 19 20 2020 Projected "Interest Expense" 21 22 Assume that Notes Payable" remains at ts 2019 level 23 Per the information in the case, an 8% annual interest rate applies to debe 24 outstanding "Notes Payable" as of January 1, 2020 25 26 Notes Payable 27 X 8% annual rate 28 Projected 2020 Interest Expense" 29 30 31 32 33 34 35 36 3r 156 39 40 42 43 44 Sheet1 Sheet do 41 PM 10/1VA