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The most recent financial statements for Hopington Tours Inc. follow. Sales for 2016 are projected to grow by 25 percent. Interest expense will remain constant,
The most recent financial statements for Hopington Tours Inc. follow. Sales for 2016 are projected to grow by 25 percent. Interest expense will remain constant, the tax rate and the dividend payout rate wil 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 2015 Statement of Comprehensive Income Sales Costs Other expenses $761,000 596,000 17,000 Earnings before interest and taxes Interest paid $148,000 18,000 Taxable income Taxes (30%) S 130,000 39,000 Net income S 91,000 Dividends Addition to retained earnings $20,800 70,200 HOPINGTON TOURS INC. Statement of Financial Position as of December 31, 2015 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash Accounts receivable S 27,100 Accounts payable S 69,800 42,500 Notes payable 18,800 S 88,600 $144,000 Common stock and paid-in surplus $130,000 88,700Total Inventory Total Fixed assets $158,300 Long-term debt Owners' equity Net plant and equipment $380,000 175,700 $305,700 $538,300 Total liabilities and ownersequity $538,300 Retained earnings Total Total assets Complete the pro forma statement of comprehensive income below. (Input all amounts as positive values.) HOPINGTON TOURS INC Pro Forma Statement of Comprehensive Income 25 % Sales Growth Sales Costs Other expenses EBIT Interest Taxable income Taxes (30%) Net income
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