$1$ Forecast the $2024$ Financial Statements based on the assumptions given for each item.

Income Statement

$20232024$

Sales $100,000$ Sales growth of $20\%$

COGS $75,00075\%$ of Sales

Gross Profit $25,000$

Operating expenses

Selling expenses

Advertsing $20003\%$ of Sales

Commissions $50006\%$ of Sales

Administrative expenses

Office Supplies $3500$ constant

Office equipment $2500$ constant

Total Operating expenses $13000$

Operating Income $12,000$

Non$-$Operating or other revenue

Interest revenues $5000$ constant

Gain on sale of Investments $30000$

Interest expense $50010\%$ of any debt

Loss from Lawsuit $15000$

Total non$-$operating $10000$

Net Income $22,000$

Balance Sheet

Assets Liabilities

Current Assets Current liabilities

Cash $2,1004\%$ of Sales Notes payable $5,0005\%$ of Sales

Petty Cash $100$ constant Accounts payable $35,90040\%$ of Sales

Temporary investments $10,000$ constant Wages payable $8,500$ constant

Account receivable $40,50045\%$ of Sales Interest payable $2,900$ constant

Inventory $31,00020,000$ Taxes payable $6,10035\%$ of Net Income

Supplies $3,800$ constant Warranty payable $1,100$ constant

Prepaid Insurance $1,500$ constant Unearned revenues $1,500$ constant

Total current assets $89,000$ Total current liabilities $61,000$

Investments $36,000$ constant Long$-$term liabilities

Notes Payable $20,00018,000$

Property, plant & equipment Bonds Payable $400,000360,000$

Land $5,500$ constant Total long$-$term liabilities $420,000$

Land improvements $6,500$ constant

Buildings $180,000300,000$ Total liabilities $481,000$

Equipment $201,000$ constant

Less: accumulated deprec. $(56,000)65,000$

Prop, plant & equip $--$ net $337,000$

Intangible assets

Stockholders' Equity

Goodwill $105,000$ constant Common Stock $110,000$ constant

Trade names $200,000$ constant Retained Earnings $220,000100\%$ of Net Income retained

Total intangible assets $305,000$ Accum. Other income $9,000$ constant

Less: Treasury stock $(50,000)$ constant

Other assets $3,000$ constant Total stockholders' equity $289,000$

Total assets $770,000$ Total liabilities & Stockholders' equity $770,000$

External Funding Required