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Jim's Espresso expects sales to grow by 9.7% next year. Using the following statements and the percent of salesmethod, forecast:

a. Costs

b. Depreciation

c. Net Income

d. Cash

e. Accounts receivable

f. Inventory

g. Property, plant, and equipment

(Note: Make sure to round all intermediate calculations to at least five decimal places.)

The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capitalexpenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career.

a.The forecasted costs will be?

(Round to the nearest dollar and enter all numbers as positive.)

b.The forecasted depreciation will be

(Round to the nearest dollar and enter all numbers as positive.)

c. The forecasted net income will be

(Round to the nearest dollar.)

d. The forecasted cash will be

(Round to the nearest dollar.)

e. The forecasted accounts receivable will be

(Round to the nearest dollar.)

f. The forecasted inventory will be

(Round to the nearest dollar.)

g. The forecasted property, plant, and equipment will be

(Round to the nearest dollar.)

1: Data Table

Click on the icons located on the top-right corners of the data tables below to copy their contents into a spreadsheet.

Income Statement			Balance Sheet
Sales	$198,010		Assets
Costs Except Depreciation	(100,830)		Cash and Equivalents	$15,000
EBITDA	$97,180		Accounts Receivable	1,990
Depreciation	(5,930)		Inventories	4,020
EBIT	$91,250		Total Current Assets	$21,010
Interest Expense (net)	(520)		Property, Plant, and Equipment	10,040
Pre-tax Income	$90,730		Total Assets	$31,050
Income Tax	(31,756)
Net Income	$58,974		Liabilities and Equity
			Accounts Payable	$1,430
			Debt	3,930
			Total Liabilities	$5,360
			Stockholders' Equity	25,690
			Total Liabilities and Equity 31050

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