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Forecasting Legends' Balance Sheet as of 12/31/Current Year $ 250,000 Accounts Payable $ 500,000 600,000 Accrued Liabilities 220,000 1,300,000 Notes Payable 75,000 nt Assets 2,150,000 Total Current Liabilities 795,000 2,500,000 L/T Debt 1,700,000 ts $ 4,650,000 Common Stock 755,000 Retained Earnings 1,400,000 Toal Liab. & Equity $ 4,650,000 Legends' Income Statement for the year ended 12/31/Current Year $ 6,500,000 4,875,000 Sales Operating Costs ЕВIT 1,625,000 Interest 170,000 EBT 1,455,000 Тахes 436,500 Net Income $ 1.018.500

Forecasting Legends' Balance Sheet as of 12/31/Current Year $ 250,000 Accounts Payable $ 500,000 600,000 Accrued Liabilities 220,000 1,300,000 Notes Payable 75,000 nt Assets 2,150,000 Total Current Liabilities 795,000 2,500,000 L/T Debt 1,700,000 ts $ 4,650,000 Common Stock 755,000 Retained Earnings 1,400,000 Toal Liab. & Equity $ 4,650,000 Legends' Income Statement for the year ended 12/31/Current Year $ 6,500,000 4,875,000 Sales Operating Costs ЕВIT 1,625,000 Interest 170,000 EBT 1,455,000 Тахes 436,500 Net Income $ 1.018.500

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Forecasting Legends' Balance Sheet as of 12/31/Current Year Cash $ 250,000 Accounts Payable $ 500,000 Receivables 600,000 Accrued Liabilities 220,000 Inventories 1,300,000 Notes Payable 75,000 Total Current Assets 2,150,000 Total Current Liabilities 795,000 PP&E 2,500,000 L/T Debt 1,700,000 Total Assets $ 4,650,000 Common Stock 755,000 Retained Earnings 1,400,000 Toal Liab. & Equity $ 4,650,000 Legends' Income Statement for the year ended 12/31/Current Year Sales $ 6,500,000 Operating Costs 4,875,000 ЕBIT 1,625,000 Interest 170,000 EBT 1,455,000 Таxes 436,500 Net Income $ 1,018,500 Other data: Next years' sales are forecasted to increase by 7% Share price $ 78.00 Legends operated at 100% capacity in the current year Dividends paid $ 203,700 Additions to PP&E to support growth = $ 1,000,000 Tax rate 30% Legends's dividend payout % will remain constant next year Operating costs will remain the same % of sales next year 1) Forecast Legends' next years' Income Statement and Balance Sheet.
Transcribed Image Text:Forecasting Legends' Balance Sheet as of 12/31/Current Year Cash $ 250,000 Accounts Payable $ 500,000 Receivables 600,000 Accrued Liabilities 220,000 Inventories 1,300,000 Notes Payable 75,000 Total Current Assets 2,150,000 Total Current Liabilities 795,000 PP&E 2,500,000 L/T Debt 1,700,000 Total Assets $ 4,650,000 Common Stock 755,000 Retained Earnings 1,400,000 Toal Liab. & Equity $ 4,650,000 Legends' Income Statement for the year ended 12/31/Current Year Sales $ 6,500,000 Operating Costs 4,875,000 ЕBIT 1,625,000 Interest 170,000 EBT 1,455,000 Таxes 436,500 Net Income $ 1,018,500 Other data: Next years' sales are forecasted to increase by 7% Share price $ 78.00 Legends operated at 100% capacity in the current year Dividends paid $ 203,700 Additions to PP&E to support growth = $ 1,000,000 Tax rate 30% Legends's dividend payout % will remain constant next year Operating costs will remain the same % of sales next year 1) Forecast Legends' next years' Income Statement and Balance Sheet.
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