The Eagle Feather Fabric Company expects to complete the current year with the financial results given below.

Forecast next year using a modified percentage of sales method assuming no dividends are paid and no new stock is sold along with the following:

1. A 23% growth in sales and a 40% growth in net fixed assets.. (a)
2. A 15% growth in sales with a 10% growth in expenses and a 20% growth in net fixed assets. (Note that negative debt means the business will generate more cash than is currently owed.) (b)

Enter your answers in thousands. For example, an answer of $12 thousands should be entered as 12, not 12,000. Round your answer to the nearest thousand. Enter all amounts as a positive number.

INCOME STATEMENT (5000) Current Year Next Year Revenue 536,100 S 44,403 $ 14,440 14,440 X COGS Gross Margin $ Expenses EBIT $21,660 12.635 $9,025 625 $8,400 $ $ 29,963 X 12,635 x 17,328 X 625 X 16,703 X 7,015 X 41,515 14,440 x 27,075 x 13,899 13,177 x 625 x 12,552 x 5,272 x 7,280 x Interest (11%) EBT $ Tax (42%) 3,528 Net Income $4,872 $ 9,688 X BALANCE SHEET($000) $1,000 $ $ 1,958 x Assets Cash Accounts receivable 2,916 5,000 x 5,000 5,000 x Inventory 2,888 Current assets X x $8,888 2,888 x 10,804 X 10,150 $ 2,888 9,846 8,700 Net fixed assets 7.250 $16,138 Total Assets $ 20,954 X 18,546 x Liabilities & equity Accounts payable Accruals $ $1.550 530 1,550 X 530 X 1,550 x 530 x 2,080 X 2,080 Current liabilities Debt $2.080 5.598 5,598 Equity 8,460 5,598 x 13,276 X 20,954 x 10,868 X Total LSE $16.138 18,546 X INCOME STATEMENT (5000) Current Year Next Year Revenue 536,100 S 44,403 $ 14,440 14,440 X COGS Gross Margin $ Expenses EBIT $21,660 12.635 $9,025 625 $8,400 $ $ 29,963 X 12,635 x 17,328 X 625 X 16,703 X 7,015 X 41,515 14,440 x 27,075 x 13,899 13,177 x 625 x 12,552 x 5,272 x 7,280 x Interest (11%) EBT $ Tax (42%) 3,528 Net Income $4,872 $ 9,688 X BALANCE SHEET($000) $1,000 $ $ 1,958 x Assets Cash Accounts receivable 2,916 5,000 x 5,000 5,000 x Inventory 2,888 Current assets X x $8,888 2,888 x 10,804 X 10,150 $ 2,888 9,846 8,700 Net fixed assets 7.250 $16,138 Total Assets $ 20,954 X 18,546 x Liabilities & equity Accounts payable Accruals $ $1.550 530 1,550 X 530 X 1,550 x 530 x 2,080 X 2,080 Current liabilities Debt $2.080 5.598 5,598 Equity 8,460 5,598 x 13,276 X 20,954 x 10,868 X Total LSE $16.138 18,546 X