Below is the current income statement and balance sheet for your firm. Using the template posted below (in PDF form and text form), 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.

Please use the layout below to answer this question.

PDF FORM

TEXT FORM Percentage of Sales Template
Income Statement:	Current Yr.	Next Yr.	Calculation
Sales
Costs except Depr.
EBITDA
Depreciation
EBIT
Interest Expense (net)
Pretax Income
Income Tax
Net Income
First Pass Balance Sheet	Current Yr.	Next Yr.	Calculation
Assets
Cash and Equivalents
Accounts Receivable
Inventories
Total Current Assets
Property Plant and Equipment
Total Assets
Liabilities and Equity
Accounts Payable
Debt
Total Liabilities
Stockholders' Equity
Total Liabilities and Equity
Net New Financing
Second Pass Balance Sheet	Current Yr.	Next Yr.	Calculation
Assets
Cash and Equivalents
Accounts Receivable
Inventories
Total Current Assets
Property Plant and Equipment
Total Assets
Liabilities and Equity
Accounts Payable
Debt
Total Liabilities
Stockholders' Equity
Total Liabilities and Equity

Income Statement Current Sales Costs except Dc EBITDA 1,500,000 (800,000 700,000 (150,000) 550,000 (50,000 500,000 200,000) 300,000 reciation EBIT Interest Expense (net Pretax Income Income Tax Net Income Balance Sheet Current ssets Cash and Equivalents Accounts Receivable Inventories Total Current Assets Pro Total Assets 1,200,000 800,000 400,000 2,400,000 1,800,000 4,200,000 Plant and Equipment Liabilities and Equity Accounts Payable Debt Total Liabilities Stockholders' Equit Total Liabilities and Equit 1,500,000 500,000 2,000,000 2,200,000 4,200,000