Jim's Espresso expects sales to grow by 9.7% next year. Assume that Jim's pays out of its net income. Use the following statements BELOW... 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 Costs Except Depreciation EBITDA Depreciation EBIT Interest Expense (net) Pre-tax Income Income Tax Net Income $200,220 (100,090) $100,130 (5,990) $94,140 (520) Balance Sheet Assets Cash and Equivalents Accounts Receivable Inventories Total Current Assets Property, Plant, and Equipment Total Assets $15,030 1,930 3,960 $20,920 9,950 $30,870 $93,620 (32,767) $60,853 Liabilities and Equity Accounts Payable Debt Total Liabilities Stockholders' Equity Total Liabilities and Equity $1,400 4,010 $5,410 25,460 $30,870 Income Statement Sales Costs Except Depreciation EBITDA Depreciation EBIT Interest Expense (net) Pre-tax Income Income Tax Net Income $200,220 (100,090) $100,130 (5,990) $94,140 (520) Balance Sheet Assets Cash and Equivalents Accounts Receivable Inventories Total Current Assets Property, Plant, and Equipment Total Assets $15,030 1,930 3,960 $20,920 9,950 $30,870 $93,620 (32,767) $60,853 Liabilities and Equity Accounts Payable Debt Total Liabilities Stockholders' Equity Total Liabilities and Equity $1,400 4,010 $5,410 25,460 $30,870