Texas Company is sure sales will grow 40% next year. Assume that is true. Then assume that COGS, Current Assets, and Current Liabilities all vary directly with Sales (that means if sales grows a certain percentage, then the account in question will grow by that same percentage). Assume that fixed expenses will remain unchanged and that $3,000 worth of new Fixed Assets will be obtained next year.

Texas Company

Financial Forecast

Estimated

This year for next year

Sales $45,000 _________

COGS 5,000 _________

Gross Profit 40,000 _________

Fixed Expenses 3,000 ___3,000______

BeforeTax Profit 37,000 _________

Tax @ 33.3333% 12,332 _________

Net Profit 24,668 _________

Dividends $0 _________

Current Assets $30,000 _________

Net Fixed Assets 20,000 _________

Total Assets $50,000 _________

Current Liabilities $18,000 _________

Longterm debt 3,000 _________

Common Stock 9,000 __ _______

Retained Earnings 13,000 __________

Total Liabs & Eq $43,000 ___________

Amount need to balance the balance sheet ___________

(Projected total assets minus projected

total liabilities & equity *)