Jim's Espresso expects sales to grow by 10.0% next year. Using the following statements and the percent of sales method, forecast:

Balance Sheet Assets Cash and Equivalents $15,000 Accounts Receivable 2,000 Inventories 4,000 Total Current Assets $21,000 Property, Plant and Equipment 10,000 Total Assets $31,000 Liabilities and Equity Accounts Payable $1,500 Debt 4,000 Total Liabilities $5,500 Stockholders' Equity 25,500 Total Liabilities and Equity $31,000

a. Costs (Round to the nearest dollar and enter all numbers as positive.)

b. Depreciation

c. Net Income

d. Cash

e. Accounts receivable

f. Inventory

g. Property, plant, and equipment

(Note:

Make sure to round all intermediate calculations to at least five decimal places.)

The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career.