Jim's Espresso expects sales to grow by

9.7 %9.7%

next year. Assume that Jim's pays out

81.5 %81.5%

of its net income. Use the following statements

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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.