It is January 1^st, 2015. 2014 turned out very well for Oscar his projections were quite close. He wants you to project out an Income Statement, Balance Sheet and a Cash Flow Statement for 2015 using the new assumptions outlined below. (40 points)

-2015 year sales will each be 25% higher than the $110,000 realized in 2014

-Gross margins in 2015 will be 55, 5% higher than the 50% realized in 2014

-Operating margins will be 22%, 2% higher than 20% realized in 2014

-Accounts Receivables will be 12% of sales, lower than the 15% seen in 2014

-Inventory will be 15% of sales, higher than the 12% seen in 2014

-Accounts Payable will be 4% of sales in 2015, lower than the 5% seen in 2014

-Accrued expenses payable will be 4% of sales in 2015, lower than the 7% seen in 2014

-The Bank of Connecticut will continue to be paid 8% interest on the $30,000 worth of loans.

-The combined federal and provincial tax rates will be 30%

-No new capital purchases are made

-Closing cash is expected to remain at the same level predicted for and seen in 2014

-Depreciation of existing capital equipment continues at the same rate observed in 2014 (it is 10%)

Income Statement
Sales	100,000
Less:COGS	50000	=100000*50%
Gross Profit	50000	=100000*50%
Less:Operating Expenses	30,000	balancing figure =50000-20000
Operating Profit	20,000	=100000*20%
Less: Interest	2,400	=30000*8%
Profit before tax	17,600
Less: Taxes@30%	5,280	=17600*30%
Profit after tax	12,320
Balance Sheet
Capital Equipment	35000		Equity Financing	28,680	=83000-5000-7000-30000-12320
Less:Accumulated depreciation	3500	=35000*10%
	31500		Retained Earning	12,320
Accounts Receiavable	15,000	=100000*15%	Accounts Payable	5,000	=100000*5%
Inventory	12,000	=100000*12%	Accrued Expenses Payable	7,000	=100000*7%
Cash	24500		Bank Loan	30000
Total	83000			54320