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The most recent financial statements for Hopington Tours Inc. follow. Sales for 2020 are projected to grow by 20%. Interest expense will remain constant; the
The most recent financial statements for Hopington Tours Inc. follow. Sales for 2020 are projected to grow by 20%. Interest expense will remain constant; the tax rate and the dividend payout rate will also remain constant. Costs, other expenses, current assets, and accounts payable increase spontaneously with sales. The firm is operating at full capacity and no new debt or equity is issued. HOPINGTON TOURS INC. 2019 Statement of Comprehensive Income Sales Costs Other expenses Earnings before interest and taxes Interest paid. Taxable income Taxes (35%) Net income Dividends Addition to retained earnings Current assets. Cash Accounts receivable Inventory Total Total assets Assets Fixed assets Net plant and equipment $33,735 78,715 $ 25,300 40,700 86,900 $152,900 $413,000 $929,000 723,000 19,000 HOPINGTON TOURS INC. Statement of Financial Position as of December 31, 2019 $565,900 $187,000 14,000 $173,000 60,550 $112,450 Liabilities and Owners' Equity Current liabilities. Accounts payable Notes payable Total Long-term debt Owners' equity Common stock and paid-in surplus Retained earnings Total Total liabilities and owners' equity $ 68,000 17,000 $ 85,000 $158,000 $140,000 182,900 $322,900 $565,900
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