Problem 4-7 The Eagle Feather Fabric Company expects to complete the current year with the financial results given below. Forecast next year using a modified percentage of sales method assuming no dividends are paid and no new stock is sold along with the following: a. A 25% growth in sales and a 40% growth in net fixed assets. b. A 15% growth in sales with a 10% growth in expenses and a 20% growth in net fixed assets. (Note that negative debt means the business will generate more cash than is currently owed.) Enter your answers in thousands. For example, an answer of $12 thousands should be entered as 12, not 12,000. Round your answer to the nearest thousand. Enter all amounts as a positive number. INCOME STATEMENT (5000) Current Year Next Year Revenue $36,100 14,440 COGS Gross Margin Expenses EBIT $21,660 12,635 $9,025 625 $8,400 Interest (11%) EBT Tax (42%) Net Income 3,528 $4,872 BALANCE SHEET (5000) Assets Cash $1,000 5,000 Accounts receivable Inventory 2,888 Current assets Net fixed assets $8,888 7,250 $16,138 Total Assets $1,550 Liabilities & equity Accounts payable Accruals Current liabilities 530 $2,080 Debt 5,598 Equity 8,460 Total L&E $16,138