Problem 12-9 Financing Deficit

Garlington Technologies Inc.'s 2016 financial statements are shown below:

Balance Sheet as of December 31, 2016

Cash	$ 180,000		Accounts payable	$ 360,000
Receivables	360,000		Notes payable	156,000
Inventories	720,000		Line of credit	0
Total current assets	$1,260,000		Accruals	180,000
Fixed assets	1,440,000		Total current liabilities	$ 696,000
			Common stock	1,800,000
			Retained earnings	204,000
Total assets	$2,700,000		Total liabilities and equity	$2,700,000

Income Statement for December 31, 2016

Sales	$3,600,000
Operating costs	3,279,720
EBIT	$ 320,280
Interest	18,280
Pre-tax earnings	$ 302,000
Taxes (40%)	120,800
Net income	181,200
Dividends	$ 108,000

Suppose that in 2017 sales increase by 10% over 2016 sales and that 2017 dividends will increase to $188,000. Forecast the financial statements using the forecasted financial statement method. Assume the firm operated at full capacity in 2016. Use an interest rate of 9%, and assume that any new debt will be added at the end of the year (so forecast the interest expense based on the debt balance at the beginning of the year). Cash does not earn any interest income. Assume that the AFN will be in the of form of a line of credit. Round your answers to the nearest dollar. Do not round intermediate calculations.

Garlington Technologies Inc. Pro Forma Income Statement December 31, 2017
Sales		$ 3,960,000
Operating costs		$ 3,607,692
EBIT		$ 352,307
Interest		$ 14,040
Pre-tax earnings		$ 338,268
Taxes (40%)		$ 135,307.20
Net income		$ 202,960.80
Dividends:		$ 188,000
Addition to RE:		$ 14,960.80

Garlington Technologies Inc. Pro Forma Balance Statement December 31, 2017
Cash		$ 198,000
Receivables		$ 396,000
Inventories		$ 792,000
Total current assets		$ 1,386,000
Fixed assets		$ 1,584,000
Total assets		$ 2,970,000
Accounts payable		$ 396,000
Notes payable		$ ????
Accruals		$ 198,000
Total current liabilities		$ ?????
Common stock		$ 1,800,000
Retained earnings		$ 218,960.8
Total liabilities and equity		$ 2970000

I need help finding the notes payable and total current liabilities. Notes payable is not 156,000. I already tried that answer. please help