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The most recent financial statements for Hopington Tours Inc. follow. Sales for 2018 are projected to grow by 25% Interest expense will remain constant;
The most recent financial statements for Hopington Tours Inc. follow. Sales for 2018 are projected to grow by 25% 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. Sales Costs HOPINGTON TOURS INC. 2017 Statement of Comprehensive Income Other expenses Earnings before interest and taxes $754,000 589,000 10,000 $155,000 Interest paid Taxable income 11,000 $144,000 Taxes (30%) 43,200 Net income $100,800 Dividends $20,160 Addition to retained earnings 80,640 HOPINGTON TOURS INC. Statement of Financial Position as of December 31, 2017 Assets Liabilities and Owners' Equity Current assets Cash $ 26,400 Current liabilities Accounts payable. Accounts receivable 41,800 Notes payable $ 69,100 18,100 Inventory 88,000 Total $ 87,200 Total $156,200 Long-term debt $137,000 Owners' equity. Fixed assets Net plant and equipment $430,000 Common stock and paid-in surplus Retained earnings $123,000 239,000 Total $362,000 Total assets $586,200 Total liabilities and owners' equity $586,200 Complete the pro forma statement of comprehensive income below. (Input all amounts as positive values. Omit 5 sign in your
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