Jim's Espresso expects sales to grow by

10.3 %10.3%

next year. Using the following statements

LOADING...

and the percent of sales method, forecast:

a. Costs

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.

Income Statement			Balance Sheet
Sales	$ 206 comma 140$206,140		Assets
Costs Except Depreciation	( 99 comma 690 )(99,690)		Cash and Equivalents	$ 14 comma 990$14,990
EBITDA	$ 106 comma 450$106,450		Accounts Receivable	2 comma 1002,100
Depreciation	( 5 comma 980 )(5,980)		Inventories	3 comma 9703,970
EBIT	$ 100 comma 470$100,470		Total Current Assets	$ 21 comma 060$21,060
Interest Expense (net)	( 310 )(310)		Property, Plant, and Equipment	9 comma 9109,910
Pre-tax Income	$ 100 comma 160$100,160		Total Assets	$ 30 comma 970$30,970
Income Tax	( 35 comma 056 )(35,056)
Net Income	$ 65 comma 104$65,104		Liabilities and Equity
			Accounts Payable	$ 1 comma 480$1,480
			Debt	4 comma 0904,090
			Total Liabilities	$ 5 comma 570$5,570
			Stockholders' Equity	25 comma 40025,400
			Total Liabilities and Equity	$ 30 comma 970

a. Costs

The forecasted costs will be _____

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

b. Depreciation

The forecasted depreciation will be _____

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

c. Net Income

The forecasted net income will be _____

(Round to the nearest dollar.)

d. Cash

The forecasted cash will be _____

(Round to the nearest dollar.)

e. Accounts receivable

The forecasted accounts receivable will be _____

(Round to the nearest dollar.)

f. Inventory

The forecasted inventory will be ______

(Round to the nearest dollar.)

g. Property, plant, and equipment

The forecasted property, plant, and equipment will be _____

(Round to the nearest dollar.)