Question: You are preparing pro forma financial statements for 2020 using the percent-of-sales method. Sales were $200,000 in 2019 and are projected to be $225,000 in

You are preparing pro forma financial statements for 2020 using the percent-of-sales method. Sales were $200,000 in 2019 and are projected to be $225,000 in 2020. Net income was $15,000 in 2019 and is projected to be $20,000 in 2020. Equity was $50,000 at year-end 2018 and $60,000 at year-end 2019. Assuming that this company never issues new equity, never repurchases equity, and never changes its dividend payout ratio, what would be projected for equity at year-end 2020? Group of answer choices

$75,000

$65,000

$70,000

insufficient information to project equity in 2020

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