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Use the following information and the percent-of-sales method to answer the following question(s) Below is the 2017 year-end balance sheet for Smith, Inc. Sales for

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Use the following information and the percent-of-sales method to answer the following question(s) Below is the 2017 year-end balance sheet for Smith, Inc. Sales for 2017 were $1,600,000 and are expected to be $2,000,000 during 2018. In addition, we know that Smith plans to pay $90,000 in 2018 dividends and expects projected net income of 4% of sales. (For consistency with the Answer selections provided, round your forecast percentages to two decimals.) 3 Smith, Ine. Balance Sheet December 31, 2017 Assets: Current assets $890,000 Net fixed assets 1,000,000 Total $1.890.000 Liabilities and Owners' Equity: Accounts payable $160,000 Accrued expenses 100,000 Notes payable 700,000 Long-term debt 300,000 Total liabilities 1,260,000 Common stock plus paid-in capital 360,000 Retained earnings 270,000 Common equity 630,000 Total 1.690.000 5. Smith's projected long-term debt for 2018. 6. Smith's projected retained earnings for 2018. 7. Smith's projected discretionary financing needed for 2018

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