a. Suppose 2019 sales are projected to increase by 20% over 2018 sales. Use the...
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Accounting
a. Suppose 2019 sales are projected to increase by 20% over 2018 sales. Use the forecasted financial statement method to forecast a balance sheet and income statement for December 31,2019 . The interest rate on all debt is 10%, and cash earns no interest income. Assume that all additional balance of debt at the beginning of the year. Use the forecasted income statement to determine the addition to retained earnings. Assume that th notes payable. Also, assume that assets, spontaneous liabilities, and operating costs are expected to increase by the same percentage as sales. Determine the additional funds needed. Do not round intermediate calculations. Round your answers to the nearest Total assets: $ AFN: \$ b. What is the resulting total forecasted amount of the line of credit? Do not round intermediate calculations. Round your answer to the nearest dollar. $ that the new debt was added at the end of the year. But now suppose that the new debt is added throughout the year. Don't do any calculations, but how would this change the answers to parts a and b? If debt is added throughout the year rather than only at the end of the year, interest expense will be would have to Balance Sheet as of December 31, 2018 (Thousands of Dollars)
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