Question
Smiley Corporation's current sales and partial balance sheet are shown below. Sales $ 10,000 Balance Sheet: Liabilities Accounts payable $ 1,500 Notes payable $ 3,000
Smiley Corporation's current sales and partial balance sheet are shown below.
Sales $ 10,000
Balance Sheet: Liabilities
Accounts payable $ 1,500
Notes payable $ 3,000
Accruals $ 1,000
Total current liabilities $ 5,500
Long-term bonds $ 2,000
Total liabilities $ 7,500
Common stock $ 1,500
Retained earnings $ 2,500
Total common equity $ 4,000
Total liabilities & equity $ 11,500
Sales are expected to grow by 12% next year. Assuming no change in operations from this year to next year, what are the projected spontaneous liabilities? Do not round intermediate calculations. Round your answer to the nearest dollar.
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