Winter Technologies 2018 financial statements are shown below. 2019 Sales are forecast to grow by 7%, and dividends are forecast to increase to $1.50 per share in 2019. Create the 2019 financial statements using the percent of sales method (not the AFN equation) assuming the firm is operating at full capacity in 2018. Any extra borrowing will be done with Notes Payable and excess funds will be used to pay down Notes Payable. Interest on all interest-bearing debt is 5% and is paid on the debt outstanding at the end of the prior year. What is the AFN in 2019?

2018 Cash $100,000 Accounts Payable $ 300,000 Marketable Securities 250,000 Accruals 250,000 Account Receivable 400,000 Notes Payable 500,000 Inventory 800,000 Total Current Assets $1,550,000 Total Current Liabilities $ 1,050,000 Net Property Plant & Equipment 2,500,000 Long-term Debt 750,000 Common Stock 1,500,000 Retained Earnings 750,000 Total Assets $4,050,000 Total Liabilities and Equity $ 4,050,000 Income Statement 31-Dec-18 Sales $ 5,000,000 Operating Costs 4,000,000 EBIT 1,000,000 Interest 62,500 EBT 937,500 Taxes (30%) 281,250 Net Income $ 656,250 Number of shares outstanding 100,000 Dividends per share $1.20