The financial statements of SHEP, INC. for 20x1 follow: SHEP, INC Balance Sheet December 31, 20X1 Cash $90 Accounts receivable (net) 225 Other current assets 45 $360 Long-term assets $750 Less: Accumulated depreciation 150 600 Total assets $960 Expenses payable $180 Mortgage payable 360 $540 Common stock $200 Retained earnings 220 420 Total liabilities and equities $960 SHEP, INC Balance Sheet December 31, 20X1 Revenues $1,000 Expenses 700 Net Income $300 Other information a. Revenues for 20x2 are expected to increase by 20% b. Fixed expenses will remain constant at $200, the remaining expenses will continue to vary directly and proportionally with revenues. c. Accounts receivable at December 31, 2012 are expected to be 20% of 202 revenue. d. SHEP plan a fixed long term esset addition on January 1, 20x2 with a cost of $150. All fixed dong term assets have a useful life of 10 years, are deprecated on a straight line basis and have no anticipated salvage value e. Expenses payable at December 31, 20X2 are expected to total 20% of total expenses 1. The 20 payment on the mortgage is $35 which included $10 of interest expense (that is $20 of principal and $5 of interest expense). 8 SHLP plans to pay a dividend of $15 during 20x2. h. The other current assets at December 31, 2002 are expected to decrease by $15 to $50 at December 31, 20X2 (because of the sale cat cost of an asset included in other current assets at December 31, 2041 during 2002) During 20X2, common stock was sold for $400. Required Total cash receipts from customers for 20x2 were 50 Total cash payments for all purposes during 20x2 were $ 0