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Use the following information to answer questions 1 - 3 Inhale, Inc. 2018 Income Statement   Net...

Use the following information to answer questions 1 - 3

Inhale, Inc.
2018 Income Statement

  Net sales

$

18,400

  Cost of goods sold

15,200  

  Depreciation

700  

  Earnings before I and T

$

2,500  

  Interest paid

70  

  Taxable Income

$

2,430  

  Taxes

960  

  Net income

$

1,470  

     Dividends

$

390

Inhale, Inc.
2018 Balance Sheet

2018

2018

  Cash

$

7,600   

  Accounts payable

$

6,840   

  Accounts rec.

2,200

  Long-term debt

700   

  Inventory

8,200   

  Common stock

$

8,400   

  Total

$

18,000   

  Ret. Earnings

11,660   

  Net fixed assets

9,600   

  Total assets

$

27,600   

  Total liabilities & equity

$

27,600

Inhale, Inc., is currently operating at maximum capacity. All costs, assets, and current liabilities vary directly with sales. The tax rate and the dividend payout ratio will remain constant. In 2019, no new equity will be raised and sales are projected to increase by 10 percent. Construct the pro formas for 2019 (at first leave interest and long term debt unchanged). Then answer the following questions.

Projected total assets = $______

Projected 2013 Retained Earnings = $______

Additional new debt required = $______

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jeff jeffy answered 1 month ago
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