Jim's Espresso expects sales to grow by 10.2% next year. Assume that Jim's pays out 88.1% of its net income. Use the following statements, 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.

Sales

$200,180

Assets

Costs Except Depreciation

(99,410)

Cash and Equivalents

$15,080

EBITDA

$100,770

Accounts Receivable

2,100

Depreciation

(5,970)

Inventories

4,050

EBIT

$94,800

Total Current Assets

$21,230

Interest Expense (net)

(560)

Property, Plant, and Equipment

9,940

Pre-tax Income

$94,240

Total Assets

$31,170

Income Tax

(32,984)

Net Income

$61,256

Liabilities and Equity

Accounts Payable

$1,550

Debt

4,050

Total Liabilities

$5,600

Stockholders' Equity

25,570

Total Liabilities and Equity

$31,170