Use the % of Sales method to forecast the financial statements for Next Year.

Revenues for Next Year are $2,000 and use current assets as the plug #.

Income Statement Sales This Year $ 1,500 Cost of Goods Sold 750 Gross Profit 750 Operating Expenses 300 Net Operating Income 450 Interest Expense 150 Earnings Before Taxes 300 Income Taxes @ 50% 150 Net Income $ 150 Statement of Owner's Equity Beginning Owner's Equity $ 500 Net Income 150 Dividends 150 Ending Owner's Equity $ 500 Balance Sheet Current Assets (plug #) $ 3,500 Property & Equipment 4,500 Total Assets $ 8,000 Total Liabilities $ 7,500 Owner's Equity 500 Total Liabilities & O/E $ 8,000