QUESTION 1: Balance sheet budget (10 points) Mr. John Miller is the Director of Better Buy Inc (BB Inc.), a canadian store specialized in selling electronic devices and appliances. The management of BB Inc. Needs to establish the balance sheet forecast for the year 2021. From the balance sheet for 2020 provided below, and taking into account the assumptions for 2021, calculate the balance sheet forecast for 2021. Better Buy Inc. Balance sheet as at december 2020 and forecast for 2021 (Not audited - see notice to readers) 2020 (real) 2021 (Forecast) Assets Assumptions (in thousand $) Short term assets Cash $ 47,161 accounts receivable 5,000 Inventory 16,354 68,515 long term assets Fixed assets - equipment 10,040 Cummulated depreciation - Equipment 4,447 Fixed assets - Net 5,593 Total assets 74,108 Liabilities Short term liabilities Accounts payable 10,069 Short term loans 6,320 Long term liabilities Long term loans 54.835 Total liabilities 71,224 Equity Common shares 4 Retained earnings 2,880 Total Equity 2,884 Liabilities plus equity 74.108 Assumptions for 2021 Account receivables represent 5% of sales which are $ 228 722 000. Nel profil is $ 3 686 000 depreciation expense is the only non cash expense and the rate is 8%, degressive (or declining balance) method. Account payable represent 10% of purchases which are $ 132 316 000 No additional loan Income tax payable is $ 15 000. The company will pay a dividend of $ 5000. closing CASH ??? To be calculated by the accounting equation COGS = 70% OF SALES