Jim's Espresso expects sales to grow by 10.0% next year. Assume that Jim's pays out 90% of its net income. Use the following statements LOADING...and the percent of sales method to forecast:

a. Stockholders' equity

b. Accounts payable

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.

Income Statement Sales $200,000 Costs Except Depreciation (100,000) EBITDA $100,000 Depreciation (6,000) EBIT $94,000 Interest Expense (net) (400) Pretax Income $93,600 Income Tax (23,400) Net Income $70,200

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