Below is the current income statement and balance sheet for your firm. Using the template posted on eCollege, prepare the income statement and balance sheet for next year using the Percentage of Sales Forecasting Method. Show all work and calculations.

Sales are expected to grow to $1,800,000 next year.

The firm will pay out 50% of its net income as dividends next year.

Any net new financing will be derived from issuing additional common stock.

Income Statement Current Sales Costs ex cept D EBITDA Lepreciatioi EBIT Interest Expense (net Pretax Incotne Income Tax Net Income 1,500,000 800,000) 700.000 150,000) 550.000 50,000) 00,000 200,000) 300,000 Balance Sheet Current Assets Cash and Equivalents Accounts Receivable Inventories Total Carrent Assets Property Plant an d E Total Assets 1,200,000 800.000 400.000 2,400,000 1,800,000 4,200,000 quipment Liabiliies and Equitt Accounts Payable Debt Total Liabilities Stockhold Equitv Total Liabilities andEquitv 1,500,000 300,000 2,000,000 2,200,000 4,200,000