Problem 4-5 The management of Coker Corp, is doing a quick forecast of 20x9 using the modified percentage of sales method in preparation for a more detailed planning exercise later in the month. The estimate is to assume a 9% growth in sales. All other line items are to be assumed to grow at the same rate except for fixed assets which is projected to increase by $77,000 due to an expansion program already underway. Approximate financial statements for the current year, 20x8, and a planning worksheet are shown below. The firm pays 10% interest on all of its debt. Assume the tax rate is a fiat 20% There are no plans for dividends or the sale of additional stock next year. Make a forecast of Coker's complete income statement and balance sheet Enter your answers in thousands. For example, an answer of $12 thousands should be entered as 12, not 12,000. (Hints: The easiest way to grow number by 9% is to multiply it by 1.09 rather than taking 9% and adding. Do not grow subtotals. For example, to grow revenue and COGS by 0 round each to the nearest thousand and subtract for gross margin. Don't grow interest, debt, or equity, use the debt/interest iteration technique) Round your answers to the nearest whole thousand. Enter all amounts as a positive numbers. Coker Corp. Current and Projected Income Statements (5000) 20x8 20x9 $630 Revenue 228 COGS $402 Gross Margin 141 Expenses 261 EBIT 32 Interest (1095) $229 20x8 20x9 Revenue $630 $ COGS 228 $402 $ 141 261 Gross Margin Expenses EBIT Interest (10%) EBT Inc Tax (20%) Net Income 32 $229 $ 46 $183 $ Coker Corp. Current and Projected Balance Sheets (5000) ASSETS LIABILITIES & EQUITY 20x8 20X9 20x8 2009 $177 $ C/L $ 85 $ 516 Debt 357 251 $693 Equity $ Total $693 $ C/A F/A Total Previous uu Work