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Use the below information to answer the following question. Income Statement For the Year Sales $42,700 Cost of goods sold 29,250 Depreciation 3,750 Earnings before
Use the below information to answer the following question. |
Income Statement | |
For the Year | |
Sales | $42,700 |
Cost of goods sold | 29,250 |
Depreciation | 3,750 |
Earnings before interest and taxes | $ 9,700 |
Interest paid | 1,360 |
Taxable income | $ 8,340 |
Taxes | 2,840 |
Net income | $ 5,500 |
Dividends $1,925 |
Balance Sheet | |
End-of-Year | |
Cash | $1,320 |
Accounts receivable | 3,780 |
Inventory | 10,200 |
Total current assets | $15,300 |
Net fixed assets | 33,600 |
Total assets | $48,900 |
Accounts payable | $ 3,650 |
Long-term debt | 18,100 |
Common stock ($1 par value) | 15,000 |
Retained earnings | 12,150 |
Total Liab. & Equity | $48,900 |
All of this firms costs, net working capital, and fixed assets vary directly with sales. Sales are projected to increase by 4.8 percent. What is the pro forma net working capital for next year? |
$15,988 |
$16,684 |
$12,209 |
$17,878 |
$11,800 |
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