Jim's Espresso expects sales to grow by 10.3 % next year. Using the following statements 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
Sales	$197,120
Costs Except Depreciation	(99,200)
EBITDA	$97,920
Depreciation	(5,950)
EBIT	$91,970
Interest Expense (net)	(520)
Pretax Income	$91,450
Income Tax	(32,008)
Net Income	$59,442

Balance Sheet
Assets
Cash and Equivalents	$14,980
Accounts Receivable	2090
Inventories	3970
Total Current Assets	$21,040
Property, Plant and Equipment	10090
Total Assets	$31,130
Liabilities and Equity
Accounts Payable	$1,500
Debt	4040
Total Liabilities	$5,540
Stockholders' Equity	25590
Total Liabilities and Equity	$31,130