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Stevens Textile Corporation's 2 0 2 1 financial statements are shown below: Balance Sheet as of December 3 1 , 2 0 2 1 (
Stevens Textile Corporation's financial statements are shown below:
Balance Sheet as of December Thousands of Dollars
Cash $ Accounts payable $
Receivables Accruals
Inventories Line of credit
Total current assets $ Notes payable
Net fixed assets Total current liabilities $
Mortgage bonds
Common stock
Retained earnings
Total assets $ Total liabilities and equity $
Income Statement for December Thousands of Dollars
Sales $
Operating costs
Earnings before interest and taxes $
Interest
Pretax earnings $
Taxes
Net income $
Dividends
Addition to retained earnings $
Stevens grew rapidly in and financed the growth with notes payable and longterm bonds. Stevens expects sales to grow by in the next year but will finance the growth with a line of credit, not notes payable or longterm bonds. Use the forecasted financial statement method to forecast a balance sheet and income statement for December The interest rate on all debt is and cash earns no interest income. The line of credit is added at the end of the year, which means that you should base the forecasted interest expense on the balance of debt at the beginning of the year. Use the forecasted income statement to determine the addition to retained earnings. Assume that the company was operating at full capacity in that it cannot sell off any of its fixed assets, and that assets, spontaneous liabilities, and operating costs are expected to increase by the same percentage as sales.
What is the projected value for earnings before interest and taxes? Do not round intermediate calculations. Round your answer to the nearest dollar.
$
What is the projected value for pretax earnings? Do not round intermediate calculations. Round your answer to the nearest dollar.
$
What is the projected net income? Do not round intermediate calculations. Round your answer to the nearest dollar.
$
What is the projected addition to retained earnings? Do not round intermediate calculations. Round your answer to the nearest dollar.
$
What is the projected value of total current assets? Do not round intermediate calculations. Round your answer to the nearest dollar.
$
What is the projected value of total assets? Do not round intermediate calculations. Round your answer to the nearest dollar.
$
What is the projected sum of accounts payable, accruals, and notes payable? Do not round intermediate calculations. Round your answer to the nearest dollar.
$
What is the forecasted line of credit? Do not round intermediate calculations. Round your answer to the nearest dollar.
$
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