The Optical Scam Company has forecast a sales growth rate of 20 percent for next year. The current financial statements are shown here:

 

Income Statement
  Sales     $ 31,800,000
  Costs       27,003,300
     


  Taxable income     $ 4,796,700
  Taxes       1,678,845
     


  Net income     $ 3,117,855
     




  Dividends $ 1,247,142    
  Addition to retained earnings   1,870,713    

 

Balance Sheet
Assets   Liabilities and Equity  
  Current assets $ 7,340,000     Short-term debt $ 5,088,000  
          Long-term debt   2,345,250  
  Fixed assets   19,372,000          
 


         
          Common stock $ 5,924,750  
          Accumulated retained earnings   13,354,000  
         


 
          Total equity $ 19,278,750  
         


 
  Total assets $ 26,712,000     Total liabilities and equity $ 26,712,000  
 




   




 

 

“Is this question part of your assignment? We Can Help!”

 
"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"