The question I have is to find the projected statement of changes in equity for 2014.

. . . Financial objectives and assumptions: 1. Related to the statement of income: Revenue will increase by 10.0%. Cost of sales as a percentage of revenue will decline to 51.5%. Distribution costs as a percentage of revenue will improve slightly to 10.5%. General and administrative expenses will drop to 5.7% of revenue. Research and development costs as a percentage of revenue will increase to 2.0%. Depreciation/amortization will be $120,000. Other income will be $6,000. Finance costs will be $35,000. Income tax rate (as a percent of profit before taxes) will be maintained at the 2013 level. 2. Related to the statement of changes in equity: $50,000 in dividends will be paid to shareholders. 3. Related to the statement of financial position: a. Non-current asset accounts Investment in new capital assets will be $660,000. Other assets will be increased by $100,000. b. Current asset accounts Inventories will improve to 4.9 times. Trade receivables will improve to 44.9 days. Cash and cash equivalents will be 2.0% of revenue. c. Equity Shareholders will invest an additional $200,000 in the business. d. Non-current liabilities Long-term borrowings will increase by $39,700. e. Current liabilities Trade and other payables will increase to 11.31% of cost of sales. Notes payable will increase to $268,685. . . . . United Manufacturers Ltd. Statements of Income For the year ended December 31 (in $) 2012 2013 2,900,000 (1,870,000) 1,030,000 4,000 3,100,000 (1,880,000) 1,220,000 5,000 Revenue Cost of goods sold Gross profit Other income Distribution, administration, and other expenses Distribution Administration Research and development Depreciation/amortization Total distribution, administration, and other expenses Finance costs Total (expenses less other income) Profit before taxes (325,000) (220,000) (35,000) (95,000) (675,000) (27,000) (698,000) 332,000 166,000 166,000 (330,000) (210,000) (45,000) (105,000) (690,000) (30,000) (715,000) 505,000 252,500 252,500 Income tax expense Profit for the year United Manufacturers Ltd. Statements of Financial Positic As at December 31 (in $) 2012 2013 Assets 2,719,000 _(595,000) 2,124,000 100,000 2,224,000 2,919,000 (700.000) 2.219,000 200,000 2,419,000 256,000 420,000 48,000 724,000 2,948,000 268,000 459,000 54,000 781,000 3,200,000 Non-current assets Capital assets Accumulated depreciation/amortization Net capital assets Other assets (intangible) Total non-current assets Current assets Inventories Trade receivables Cash and cash equivalents Total current assets Total assets Equity and liabilities Equity Share capital Retained earnings Total equity Non-current liabilities Current liabilities Trade and other payables Notes payable Other current liabilities Total current liabilities Total liabilities Total equity and liabilities 800,000 652,000 1,452,000 950,000 800,000 904,500 1,704,500 1,000,000 140,000 256,000 150,000 546,000 1,496,000 2,948,000 131,600 263,900 100,000 495,500 1,495,500 3,200,000