Question: 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

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 $ 1,800
Total current liabilities $ 5,300
Long-term bonds $ 2,000
Total liabilities $ 7,300
Common stock $ 2,000
Retained earnings $ 3,000
Total common equity $ 5,000
Total liabilities & equity $ 12,300

Sales are expected to grow by 14% 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.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!