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 20% 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 ($000) Current Year Next Year ona Revenue $ 41,515 $36,100 14,440 43,681 14,440 COGS 14,440 Gross Margin $ $ $21,660 12,635 Expenses 29,241 12,635 16,606 625 27,075 13,899 13,177 625 EBIT $ $ $9,025 625 Interest (11%) EBT 12,552 $8,400 3,528 Tax (42%) 15,981 6,712 9,269 5,272 Net Income $4,872 $ $ 7,280 BALANCE SHEET ($000) Assets Cash $1,000 " Accounts receivable 5,000 Inventory 2,888 Current assets $8,888 Net fixed assets 7,250 Total Assets $16,138 Liabilities & equity Accounts payable $1,550 Accruals 530 Current liabilities $2,080 Debt 5,598 Equity 8,460 Total L&E $16,138