The Owl Corporation is planning for $20x2.$ The firm expects to have the following financial results

in $20$X$1($$$000).$

Income Statement

Balance Sheet

Assets

Cash

Accts Rec

Inventory

Curr Assets

Fixed Assets

Gross $,25,608$

Accum Dep $\frac{(14,936)}{10,672}$

Total Assets

$20,958$

Liabilities and Equity

Accts Pay $,1,388$

Accruals $,985$

Curr Liab $2,373$

Capital

Debt $,12,390$

Equity $,\frac{6,195}{18,585}$

Total L&E $,20,958$

Management has made the following planning assumptions:

Income Statement

Revenue will grow by $10\%.$

The cost ratio will improve to $37\%$ of revenues.

Expenses will be held to $44\%$ of revenues.

Balance Sheet

The year end cash balance will be $$1\mathrm{.}5$ million.

The ACP will improve to $40$ days from the current $60.$

Inventory turnover will improve to $7x$ from $6x.$

Trade payables will continue to be paid in $45$ days.

New capital spending will be $$5M.$

Newly purchased assets will be depreciated over $10$ years

using the straight line method taking a full year's

depreciation in the first year.

The company's payroll will be $$13\mathrm{.}7$ million at the end of $20x2.$

No dividends or new stock sales are planned.

The following facts are also available:

The firm pays $10\%$ interest on all of its debt.

The combined state and federal income tax rate is a flat $40\%.$

The only significant payables come from inventory purchases, and

product cost is $75\%$ purchased materials.

Existing assets will be depreciated by $$1,727,000$ next year.

The only significant accrual is payroll. The last day of $202$ will

be one week after a payday.

Forecast Owl's income statement and balance sheet for $20$X$2.$ Round all calculations to the

nearest $$1,000$ and use a $360$ day year.