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Stevens Textile Corporation's 2021 financial statements are shown below: Balance Sheet as of December 31, 2021 (Thousands of Dollars) Cash $ 1,080 Accounts payable
Stevens Textile Corporation's 2021 financial statements are shown below: Balance Sheet as of December 31, 2021 (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 December 31, 2021 (Thousands of Dollars) Sales Operating costs Earnings before interest and taxes $36,000 34,000 $ 2,000 160 Interest Pre-tax earnings Taxes (25%) Net income Dividends Addition to retained earnings $ 1,840 460 $ 1,380 552 $ 828 828 Stevens grew rapidly in 2021 and financed the growth with notes payable and long-term bonds. Stevens expects sales to grow by 20% in the next year but will finance the growth with a line of credit, not notes payable or long-term bands. Use the forecasted financial statement method to forecast a balance sheet and income statement for December 31, 2022. The interest rate on all debt is 5%, 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 2021, 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 a. What is the projected value for earnings before interest and taxes? Do not round intermediate calculations. Round your answer to the nearest dollar. b. What is the projected value for pre-tax earnings? Do not round intermediate calculations. Round your answer to the nearest dolla $ c. What is the projected net income? Do not round intermediate calculations, Round your answer to the nearest dollar S d. What is the projected addition to retained earnings? Do not round intermediate calculations. Round your answer to the nearest dollar $ e. What is the projected value of total current assets? Do not round intermediate calculations, Round your answer to the nearest dollar. $ f. What is the projected value of total assets? Do not round intermediate calculations. Round your answer to the nearest dollar. g. What is the projected sum of accounts payable, accruals, and notes payable? Do not round intermediate calculations, Round your answer to the nearest dollar $ h. What is the forecasted line of credit? Do not round intermediate calculations. Round your answer to the nearest dollar. 5
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