Question $50$ of $50$

Among the items in the financial statements for $20$X$1,$ Kadan Company reported the

information below. $($This is not a complete list of all of the financial statement items.$)$

Accounts receivable $$200$

Inventory $$400$

Property, plant, and equipment $$1,000$

Accounts payable $$100$

Long$-$term loans payable $$800$

Sales $$10,000$

Cost of goods sold $$7,500$

Depreciation expense $$250$

Interest expense $$60$

In $20$X$2,$ sales are expected to increase from $$10,000$ to $$13,000.$ On January $1,$

$202,$ Kadan plans to purchase new property, plant, and equipment, increasing the

balance from $$1,000$ to $$1,500.$ Also on January $1,202,$ Kadan plans to obtain new

long$-$term loans, increasing the loan balance from $$800$ to $$1,600.$ What is a

reasonable forecast of the amount of interest expense in $202?$