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The most recent financial statements for Moose Tours, Inc., appear below. Sales f grow by 25 percent. Interest expense will remain constant; the tax rate
The most recent financial statements for Moose Tours, Inc., appear below. Sales f grow by 25 percent. Interest expense will remain constant; the tax rate and the dividend payout rate will also remain constant. Costs, other expenses, current assets, fixed assets, and accounts payable increase spontaneously with sales. or 2016 are projected to MOOSE TOURS, INC 2015 Income Statement Sales Costs Other expenses $750,000 585,000 21,000 Earnings before interest and taxes Interest expense $144,000 17,000 Taxable income Taxes (20%) $127,000 25,400 Net income $101,600 Dividends Addition to retained earnings $20,320 81,280 MOOSE TOURS, INC Balance Sheet as of December 31, 2015 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash Accounts receivable Inventory $ 20,940 Accounts payable $ 55,100 14,300 $ 69,400 $133,000 33,260 Notes payable 70,220 Tota Tota $124,420 Long-term debt Fixed assets Owners' equity Net plant and equipment 360,000 Common stock and paid-in surplus $119,000 Retained earnings 163,020 $282,020 $484,420 Tota Total assets $484,420 Total liabilities and owners' equity
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