****************Please do not copy the answer from Chegg answers similar to this question, they are not the same numbers**********************

Jones and Company has begun selling a new pie recipe and they want you to help them with next years budgeted financial statements. Using the worksheet below, complete Jones and Company forecast and answer the questions which follow.

Assumptions:

To begin with, Jones and Company is sure sales will grow 50% next year. Assume that is true. Then assume that COGS, Current Assets, and Current Liabilities all vary directly with Sales (that means if sales grows a certain percentage, then the account in question will grow by that same percentage). Assume that fixed expenses will remain unchanged and that $3,000 worth of new Fixed Assets will be obtained next year. Lastly, the current dividend policy will be continued next year.

Jones and Company

Financial Forecast

Estimated

This year for next year

Sales $45,000 _________

COGS 5,000 _________

Gross Profit 40,000 _________

Fixed Expenses 3,000 _________

BeforeTax Profit 37,000 _________

Tax @ 33.3333% 12,332 _________

Net Profit 24,668 __________

Dividends $0 ___0______

Current Assets $30,000 ___________

Net Fixed Assets 20,000 ___________

Total Assets $50,000 ___________

Current Liabilities $18,000 ___________

Longterm debt 3,000 ___________

Common Stock 9,000 ___________

Retained Earnings 13,000 ____________

Total Liabs & Eq $43,000 ____________

Amount need to balance the balance sheet _____________

(Projected total assets minus projected

total liabilities & equity *)

* If this number is positive, it means Jones and Company need additional external funding to finance their projected asset growth. If this number is negative, it means Jones and Company has programmed too much financing for the amount of assets they project.