In: Finance
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 -7,991
EAT 26,637
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 2% from its current percent of sales. Expenses will stay at the same percent of sales; Current assets will also stay at their same percent of sales. Fixed assets will increase by $18,000 ; 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.