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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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