The Optical Scam Company has forecast an 17 percent sales growth rate for next year....
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Accounting
| The Optical Scam Company has forecast an 17 percent sales growth rate for next year. The current financial statements are shown below. Current assets, fixed assets, and short-term debt are proportional to sales. |
| INCOME STATEMENT |
| Sales | $ | 47,000,000 | ||
| Costs | 37,900,000 | |||
| Taxable income | $ | 9,100,000 | ||
| Taxes | 3,185,000 | |||
| Net income | $ | 5,915,000 | ||
| Dividends | $ | 2,366,000 | ||
| Additions to retained earnings | $ | 3,549,000 |
| BALANCE SHEET | ||||||||
| Assets | Liabilities and Equity | |||||||
| Current assets | $ | 15,930,000 | Short-term debt | $ | 12,690,000 | |||
| Long-term debt | 13,190,000 | |||||||
| Fixed assets | 40,000,000 | |||||||
| Common stock | $ | 4,000,000 | ||||||
| Accumulated retained earnings | 26,050,000 | |||||||
| Total equity | $ | 30,050,000 | ||||||
| Total assets | $ | 55,930,000 | Total liabilities and equity | $ | 55,930,000 | |||
| ||||||||
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