1. All sales will be on account and are expected to increase by 12% in 2024. 2. Accounts receivable will be 4% lower on December 31, 2024, than on December 31, 2023. 3. All purchase of merchandise will be on account. 4. Cost of goods sold will increase by 10% in 2024. 5. Accounts payable are expected to be $17,000 on December 31, 2024. 6. Inventory will be 3% higher on December 31, 2024, than on December 31, 2023. 7. Straight line depreciation is used for all fixed assets. 8. No fixed assets will be disposed of during 2024. The annual depreciation of existing assets is $30,000 per year. 9. Equipment will be purchased on January 1, 2024, for $25,000 cash. The equipment will have an estimated life of 5 years with no salvage value. 10. Operating expenses, other than depreciation, will increase by 8% in 2024. 11. All operation expenses, other than depreciation, will be paid in cash. 12. Green Company's income tax rate is 30% and taxes are paid in cash in four equal payments. Payments will be made on the 15th of April, June, September, and December. For simplicity, assume taxable income equals financial reporting income before taxes. 13. Green Company will continue to pay $19,000 in dividends for 2024 on its common stock shares. 2. J.E. Accounts receivable are expected to be 4% lower on December 31, 2024 than on December 31, 2023. For this you need to know what A/R were on 12/31/2023; [$18,500] Take 96% of that to get the expected ending A/R on 12/31/2024; [$17,760] From 1. above you know what sales are expected to be; [$480,000] This is the DEBIT to A/R; and the CREDIT to Sales Accounts Receivable $440,000 Sales $440,000 A/R $18,500 $480,000 PPPP $17,760 (what you want) Now you can determine what the CREDIT to A/R is expected to be in 2024 and this must be the DEBIT to cash. Accounts Receivable $480,740 Cash $480,740 Table 1 Green Company - Actual financial statements for 2023 and Red Company - Forecasted Financial Statement for 2024 Green Company Red Company 2023 2024 Actual Projected Sales S 400,000 $ 50,000 Cost of Goods Sold (243,000) (27,500) Operating Expenses (110,000) (5,000) Income Before Taxes $ 47,000 $ 17,500 Income Tax Expenses (18,800) (7,000) Net Income S 28,200 $ 10,500 Retained Earnings January 1 21,500 S 7,250 Add Net Income 28,200 10,500 Deduct Dividends (19,000) (3,500) Retained Earnings December 31 $ 30,700 $ 14,250 Cash S 18,100 $ 9,750 Accounts Receivable 18,500 6,500 Inventory 13,000 6,000 Property, Plant and Equipment 336,500 106,500 Accumulated Depreciation (245,000) (14,000) Total Assets S 141,100 S 114,750 Accounts Payable $ 21,900 $ 10,500 Common Stock* 85,000 75,000 Paid-in Capital in Excess in Par 3,500 15,000 Retained Earnings 30,700 14,250 Total Equities and Liabilities S 141,100 S 114,750 Green Company: $8.50 par value. Red Company: 10,000 shares outstanding at $7.50 par