Problem 1: (10 points)

The following balance sheet and income statement pertain to Goode Corp., using the following assumptions complete a forecasted 2016 income statement:

Assumptions for 2016:
	Revenue growth rate	32%
	COGS	64% of sales
	Operating expenses	23% of sales
	Interest expense	10% of beginning long-term debt
	Tax rate		35%

Goode Corp. Consolidated Statement of Income
(Thousands except per share amounts)	2015
Net Revenues	$345,871
Cost of Revenue	(226,546)
SG&A	(83,009)
Operating Income	36,316
Interest Expense	(484)
Income Before Income Taxes	35,832
Income taxes	(12,541)
Net Income	$23,291
Goode Corp Consolidated Balance Sheet
(Thousands)	2015
Current Assets
Cash and Equivalents	7,905
Merchandise inventory	6,308
Accounts receivable	6,614
PPE (including intangibles), net	39,458
Total Assets	60,285
Liabilities and Stockholders' Equity
Accounts payable	9,643
Long-term debt	13,500
Shareholders' Equity
Common stock and APIC	28,613
Retained earnings	8,529
Total Liabilities and Shareholders' Eq.	60,285

Forecasted income statement:

Goode Corp. Consolidated Statements of Income
(Thousands except per share amounts)	2016	2015