The below table summarizes the 2017 income statement and end-year balance sheet of Drakes Bowling Alleys. Drakes financial manager forecasts a 15% increase in sales and costs in 2018. The ratio of sales to average assets is expected to remain at 0.50. Interest is forecasted at 3% of debt at the start of the year.

^a Assets at the end of 2016 were $4,100,000.

^b Debt at the end of 2016 was $670,000.

a. What is the implied level of assets at the end of 2018? (Enter your answer in thousands.)

Implied level of assets=

Income Statement Sales Costs nterest Pretax profit Tax Net income $2,100 (50% of average assets ) a 1,050 (50% of sales) 20 (3% of debt at start of year) $1,030 206 (20% of pretax profit) $ 824 Balance Sheet $4,300 $4,050 250 Debt Assets Equity $4,300 $4,300 Total