Stevens Textile Corporations 2018 financial statements are shown below: Balance Sheet as of December 31, 2018 (Thousands of Dollars) Cash $ 1,080 Accounts payable $ 4,320 Recelvables 6,480 Accruals 2,880 Inventories 9,000 Line of credit 0 Total current assets $16,560 Notes payable 2,100 Net fixed assets 12,600 Total current liabilities $ 9,300 Mortgage bonds 3,500 Common stock 3,500 Retained earnings 12,860 Total assets $29,160 Total liabilities and equity $29,160 Income Statement for January 1 - December 31, 2018 (Thousands of Dollars) Sales $36,000 Operating costs 32,440 Earnings before interest and taxes $3,560 Interest 460 Pre-tax earnings $ 3,100 Taxes (40%) 1,240 Net income $ 1,860 Dividends (45%) $ 837 Addition to retained earnings $ 1,023 Sition to retained earnings $1,023 a Suppose 2019 sales are projected to increase by 10% over 2018 sales. Use the forecasted financial statement method to forecast a balance sheet and income statement for December 31, 2019. The interest rate on all debt is 9%, and cash cars no interest income. Assume that all additional debt in the form of a line of credit 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 2016, that it cannot sell off any of its fixed assets, and that any required financing will be borrowed as Do not round intermediate calculations, Round your answers to the nearest dollar notes payable. Also, assume that assets, spontaneous liabities, and operating costs are expected to increase by the same percentage as sales. Determine the additional funds needed Total assets AFNIS 1. What is the consulting total forecasted amount of the line of credit to not round Intermediate calculations, Round your arower to the nearest dollar. c. In your answers to Parts and you should not have charged any interest in the additional debt added during 2019 because it was somed that the new debt was added at the end of the year. But now suppose that the new debt is added throughout the year. Don't do any calculations, but how would this change the answers to parts and D? af debt is added throughout the year rather than only at the end of the year, interest expunite will be select than in the projections of puta. This would cause not income to be Select the addition to retained earnings to be select and the An to be select Thus, you would have to select new debt. Stevens Textile Corporation's 2018 financial statements are shown below: Balance Sheet as of December 31, 2018 (Thousands of Dollars) Cash $ 1,080 Accounts payable $ 4,320 Receivables 6,480 Accruals 2,880 Inventories 9,000 Line of credit 0 Total current assets $16,560 Notes payable 2,100 Net fixed assets 12,600 Total current liabilities $9,300 Mortgage bonds 3,500 Common stock 3,500 Retained earnings 12,860 Total assets $29,160 Total liabilities and equity $29,160 Income Statement for January 1 - December 31, 2018 (Thousands of Dollars) Sales $36,000 Operating costs 32,440 Earnings before interest and taxes $3,560 Interest 460 Pre-tax earnings $ 3,100 Taxes (40%) 1,240 Net income $1,860 Dividends (45%) $ 837 Addition to retained earnings $ 1,023 505) $ 837 to retained earnings $ 1,023 Suppose 2019 sales are projected to increase by 10% over 2018 sales. Use the forecasted financial statement method to forecast a balance sheet and income statement for December 31, 2019. The interest rate on all debt is 9%, and cash cams no interest income. Assume that all additional debt in the form of a 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 2018, that it cannot sell off any of its fixed assets, and that any required financing will be borrowed as notes payable. Also, assume that assets, spontaneous abilities, and operating costs are expected to increase by the same percentage as sales. Determine the additional funds needed. Do not round intermediate calculations. Round your answers to the nearest dollar Total assetsis AFNSS What is the resulting total forecasted amount of the line of credik? Do not round intermediate calculations. Hound your answer to the nearest dollar In your answers to Parts a and b, you should not have charged any interest on the additional debt added during 2019 because it was assumed that the new debt was added at the end of the year. But now suppose that the new debt is added throughout the year. Don't do any calculations, but how would this change the answers to parts and by If debt is added throughout the year rather than only at the end of the year interest expense will be select than in the projections of part a. This would cause net income to be Select the addition to retained earnings to be select and the APN to be Select Thus, you would have to select new debt