ales $4,000,000 Operating costs 3,200,000 EBIT $ 800,000 Interest 120,000 Pre-tax earnings $ 680,000 Taxes (25%) 170,000 Net income 510,000 Dividends $ 190,000 Balance Sheet as of December 31, 2019 Cash $ 160,000 Accounts payable $ 360,000 Receivables 360,000 Line of credit 0 Inventories 720,000 Accruals 200,000 Total CA $1,240,000 Total CL $ 560,000 Fixed assets 4,000,000 Long-term bonds 1,000,000 Total Assets $5,240,000 Common stock 1,100,000 RE 2,580,000 Total L&E $5,240,000 Suppose that in 2020 sales increase to $4.2 million and that 2020 dividends will increase to $226,000. Forecast the financial statements using the forecasted financial statement metho
ales $4,000,000 Operating costs 3,200,000 EBIT $ 800,000 Interest 120,000 Pre-tax earnings $ 680,000 Taxes (25%) 170,000 Net income 510,000 Dividends $ 190,000 Balance Sheet as of December 31, 2019 Cash $ 160,000 Accounts payable $ 360,000 Receivables 360,000 Line of credit 0 Inventories 720,000 Accruals 200,000 Total CA $1,240,000 Total CL $ 560,000 Fixed assets 4,000,000 Long-term bonds 1,000,000 Total Assets $5,240,000 Common stock 1,100,000 RE 2,580,000 Total L&E $5,240,000 Suppose that in 2020 sales increase to $4.2 million and that 2020 dividends will increase to $226,000. Forecast the financial statements using the forecasted financial statement metho
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Garlington Technologies Inc.'s 2019 financial statements are shown below:
Income Statement for December 31, 2019
| Sales | $4,000,000 |
| Operating costs | 3,200,000 |
| EBIT | $ 800,000 |
| Interest | 120,000 |
| Pre-tax earnings | $ 680,000 |
| Taxes (25%) | 170,000 |
| Net income | 510,000 |
| Dividends | $ 190,000 |
| Cash | $ 160,000 | Accounts payable | $ 360,000 | |
| Receivables | 360,000 | Line of credit | 0 | |
| Inventories | 720,000 | Accruals | 200,000 | |
| Total CA | $1,240,000 | Total CL | $ 560,000 | |
| Fixed assets | 4,000,000 | Long-term bonds | 1,000,000 | |
| Total Assets | $5,240,000 | Common stock | 1,100,000 | |
| RE | 2,580,000 | |||
| Total L&E | $5,240,000 |
Suppose that in 2020 sales increase to $4.2 million and that 2020 dividends will increase to $226,000.
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