Smiley Corporation's current sales and partial balance sheet are shown below.

	This year
Sales		$	10,000
Balance Sheet: Liabilities
Accounts payable		$	1,000
Notes payable		$	2,500
Accruals		$	1,000
Total current liabilities		$	4,500
Long-term bonds		$	2,000
Total liabilities		$	6,500
Common stock		$	2,000
Retained earnings		$	2,500
Total common equity		$	4,500
Total liabilities & equity		$	11,000

Sales are expected to grow by 8% next year. Assuming no change in operations from this year to next year, what are the projected spontaneous liabilities? Do not round intermediate calculations. Round your answer to the nearest dollar.

$  

Answer rating: 100% (QA)

Spontaneous liabilities are liabilities which vary with sales In this case accounts payable and acc... View the full answer