Provide projected Income Statement, Retained Earnings statement and Projected Balance Sheet on the right
using the following assumptions:
1	sales growth is 110%; sales return, as a percentage of sales revenue, does not change
2	Gross profit margin is the same as 2014 profit margin
3	Depreciation expense/Prior PPE (gross) = 4%
4	Interest expense/Prior year long-term debt = 6%
5	All other expenses (insurance, supplies, utilities, bad debt and rent) grow at the same rate as sales growth.
6	Income tax expense/ pre-tax income = 12%
7	A/R turnover is the same as that calculated for year 2014
8	A/P turnover is the same as that calculated for year 2014
9	Inventory turnover is the same as that calculated for year 2014
10	There is no change in current assets other than Cash, A/R and inventory
11	Capital expenditure/Sales =7%
12	Assume no change in long-term assets except for PP&E.
13	Assume no change in all liabilities, excpet for A/P
14	Assume no change in shareholders' Equity except for Retained Earnings
15	No dividend is paid on common stock and 5% dividend is paid on preferred stock