Balance Sheet as of December 31, 2019 (Thousands of Dollars) Cash $ 1,080 Accounts payable Accruals $ 4,320 Receivables 6,480 2,880 9,000 $16,560 Inventories Line of credit Total current assets Notes payable 2,100 $ 9,300 Net fixed assets 12,600 Total current liabilities Mortgage bonds Common stock 3,500 3,500 $29,160 Retained earnings Total liabilities and equity 12,860 $29,160 Total assets Income Statement for December 31, 2019 (Thousands of Dollars) $36,000 34,000 $ 2,000 Sales Operating costs Earnings before interest and taxes Interest 160 $ 1,840 Pre-tax earnings Taxes (25%) 460 Net income $ 1,380 Dividends 552 Addition to retained earnings $ 828
Stevens Textile Corporation’s 2019 financial statements are shown here. Stevens grew rapidly in 2019 and financed the growth with notes payable and long-term bonds. Stevens expects sales to grow by 15% in the next year but will finance the growth with a line of credit, not notes payable or long-term bonds. Use the
to forecast a
the addition to
a. What is the projected value for earnings before interest and taxes?
b. What is the projected value for pre-tax earnings?
c. What is the projected net income?
d. What is the projected addition to retained earnings?
e. What is the projected value of total current assets?
f. What is the projected value of total assets?
g. What is the projected sum of accounts payable, accruals, and notes payable?
h. What is the forecasted line of credit?
![Balance Sheet as of December 31, 2019 (Thousands of Dollars)
Cash
$ 1,080
Accounts payable
Accruals
$ 4,320
Receivables
6,480
2,880
9,000
$16,560
Inventories
Line of credit
Total current assets
Notes payable
2,100
$ 9,300
Net fixed assets
12,600
Total current liabilities
Mortgage bonds
Common stock
3,500
3,500
$29,160
Retained earnings
Total liabilities and equity
12,860
$29,160
Total assets
Income Statement for December 31, 2019 (Thousands of Dollars)
$36,000
34,000
$ 2,000
Sales
Operating costs
Earnings before interest and taxes
Interest
160
$ 1,840
Pre-tax earnings
Taxes (25%)
460
Net income
$ 1,380
Dividends
552
Addition to retained earnings
$
828](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F78fde527-6dc6-412d-bb18-a635b14a205b%2Fa79e4302-462f-471c-9950-33dea7de5729%2F7803h3b_processed.png&w=3840&q=75)
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