The below table summarizes the 2017 income statement and end-year balance sheet of Drake's Bowling Alleys. Drake's 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.

Income Statement Sales $2, 100 (508 of average assets) Costs 1,050 (508 of sales) Interest 20 (31 of debt at start of year) Pretax profit $1, 030 Tax 206 (201 of pretax profit) Net income S 824