Han Company wishes to forecast its net income for the year 2009. In addition, for planning purposes Fritz intends to construct a forecasted statement of cash flows for 2009. Fritz has assembled balance sheet and income statement data for 2008 and has forecast a balance sheet for 2009. In addition, Fritz has estimated that its sales in 2009 will rise to $2,200 and does not anticipate paying any dividends in the coming year. This information is summarized here.

Instructions:
1. Prepare a forecasted income statement for 2009.Clearly state what assumptions you make.
2. Prepare a forecasted statement of cash flows for 2009. Use the indirect method of reporting cash from operating activities.

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Balance Sheet 2008 2009 Forecasted Other current assets 550 Property, plant, and equipment, net $1,120 200 320 $1,120 $1,372 Accounts payable Bank loans payable Total stockholders equity Total liabilities and stockholders 220 $1,372 Income Statement 2008 2009 Forecasted $2,000 $2.200 Cost of goods sold Gross profit Depreciation expense Other operating expenses.. Operating profit Interest expense Income before income taxes.. Income taxes Net income $1.300 .010 $170 80 $ 50