Produce next year's forecast using the percentage of sales method. Projected Sales = 150, plug number = current liabilities

Income Statement Next Year This Year % of Sales $ 100 20 80 $ 35 5 10 Revenues Cost of Goods Sold Gross Margin Labor Expense Material Expense Misc. Expense Operating Expenses Earnings Before Interest & Taxes Interest Expense Earnings Before Taxes Income Taxes @ 40% Net Income 50 30 5 25 10 15 $ Statement of Retained Earnings Beginning Retained Earnings $ Net Income Dividends Ending Retained Earnings $ 25 15 10 30 Balance Sheet $ Current Assets Property, Plant & Equipment Total Assets 25 75 100 $ $ 5 50 $ 55 Current Liabilities Long-Term Debt Total Liabilities Common Stock Par Paid-In Capital Retained Earnings Total Owner's Equity Total Liabilities & Owner's Equity 5 10 30 45 100 $