Lululime an athletic apparel retailer is experiencing robust sales growth. Management is forecasting sales to double over the next year to $40,000. The following has been provided to you from the CFO and other financial information.

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Cash 2,000 Accounts Payable 3,000 Accounts Receivable 4,000 Notes Payable 1,000 Inventories 4,000 Accruals 2,000 Fixed Assets 10,000 Long term debt 8,000 Total Liabilities 14,000 Common Equity 1,000 Retained Earnings 5,000 Total Equity 6,000 TOTAL ASSETS 20,000 Total Liabilities & Equity 20,000 Other information: Profit margin is forecasted at 7%. Dividend payout ratio is 40%. The company was running at capacity. All assets are expected to increase at the same rate as sales. Cash 2,000 Accounts Payable 3,000 Accounts Receivable 4,000 Notes Payable 1,000 Inventories 4,000 Accruals 2,000 Fixed Assets 10,000 Long term debt 8,000 Total Liabilities 14,000 Common Equity 1,000 Retained Earnings 5,000 Total Equity 6,000 TOTAL ASSETS 20,000 Total Liabilities & Equity 20,000 Other information: Profit margin is forecasted at 7%. Dividend payout ratio is 40%. The company was running at capacity. All assets are expected to increase at the same rate as sales.