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. Lasso Corp. wants to forecast for 2020. The end of year statements for 2019 are...

. Lasso Corp. wants to forecast for 2020. The end of year statements for 2019 are as follows:

Income Statement

Revenues $245,622

COGS - 142,461

Gross Profits 103,161

Expenses - 49,124

EBIT 54,037

- Interest - 9,642

EBT 44,395

-Taxes -19,090

EAT 25,305

Balance Sheet

Current Assets $179,304 Current liabilities $85,700

Fixed Assets $140,930 Long-term debt 78,180

Total Assets $320,234 Total liabilities $163,880

Equity $156,354

Total Liabilities & Equity $320,234

Management expects the following for 2020:

An 8% increase in revenues; COGS will increase by 1% from its current percent of sales. Expenses will stay at the same percentage of sales; Current assets will also stay at their same percentage of sales. Fixed assets will increase by $15,000; All interest will be paid at a 12% interest rate and will only be on long-term debt, which is not expected to change; the tax rate is expected to stay at the same rate. No dividends are paid and any shortfalls should be made up in current liabilities.

Prepare a forecasted income statement and balance sheet for 2020. Work to the nearest dollar.

Expert Solution

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jeff jeffy answered 1 year ago

Lasso Corp. wants to forecast for 2020. The end of year statements for 2019 are as follows:...

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