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Business, 19.09.2019 00:00 bertha4082

Suppose that in 2014 sales increase by 10% over 2013 sales and that 2014 dividends will increase to $112,000. forecast the financial statements using the forecasted financial statement method. assume the firm operated at full capacity in 2013. use an interest rate of 13%, and assume that any new debt will be added at the end of the year (so forecast the interest expense based on the debt balance at the beginning of the year). cash does not earn any interest income. assume that the all new debt will be in the form of a line of credit. i put the solution up so it can be used as a reference to solve the problems for the questions that i have below. operating cost 3,607,692 (what was multiplied or divided by to get this answer)ebit 352,308 (what was multiplied or divided by to get this answer)debt 20,280 (what was multiplied or divided by to get this answer)taxes 132,811 (what was multiplied or divided by to get this answer)addition to re 87,217 (what was multiplied or divided by to get this answer)income statement for december 31, 2013sales $3,600,000operating costs 3,279,720ebit $ 320,280interest 18,280pre-tax earnings $ 302,000taxes (40%) 120,800net income $ 181,200dividends $ 108,000balance sheet as of december 31, 2013cash $ 180,000 accounts payable $ 360,000receivables 360,000 notes payable 156,000inventories 720,000 line of credit 0total current assets $1,260,000 accruals 180,000fixed assets 1,440,000 total current liabilities $ 696,000common stock 1,800,000retained earnings 204,000total assets $2,700,000total liabilities and equity $2,700,000

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