Question: Garlington Technologies Inc s 2010 financial statements are

Garlington Technologies Inc.’s 2010 financial statements are shown below:
Balance Sheet as of December 31, 2010

Suppose that in 2011 sales increase by 10% over 2010 sales and that 2011 dividends will increase to $112,000. Forecast the financial statements using the forecasted financial statement method. Assume the firm operated at full capacity in 2010. 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 AFN will be in the form of notespayable.
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