Question

​Jim's Espresso expects sales to grow by 10.1 % next year. Assume that​ Jim's pays out 80.7 % of its net income. Use the following statements and the percent of sales method to​ forecast:

a.​ Stockholders' equity

b. Accounts payable

The Tax Cuts and Jobs Act of 2017 temporarily allows​ 100% bonus depreciation​ (effectively expensing capital​ expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career.

Balance Sheet
Assets
Cash and Equivalents	$15,050
Accounts Receivable	2070
Inventories	4090
Total Current Assets	$21,210
Property, Plant and Equipment	10050
Total Assets	$31,260
Liabilities and Equity
Accounts Payable	$1,580
Debt	3930
Total Liabilities	$5,510
Stockholders' Equity	25750
Total Liabilities and Equity	$31,260

Income Statement
Sales	$204,560
Costs Except Depreciation	(99,880)
EBITDA	$104,680
Depreciation	(5,960)
EBIT	$98,720
Interest Expense (net)	(410)
Pretax Income	$98,310
Income Tax	(34,409)
Net Income	$63,901

Answer 1

Amant a Stock Holder's equity particolars Opening Balance (t) Profit Transfered to Reseve СRefe, Te -) 25,750 13,660 39,410 Note 61 - Amant Transfered to Resewer forecast litolo particolar Amount Sales ($204566x 118.10-1) 2,25220 llo Cost except de Breciation | 99.880 x 110.10-1) (609,96? AL СВІТОР 1, 15, 253 Depreciation (5966) СВІТ 1,69,293 o un Interest expense (net) (ulo) Pre Tax Income 1,68,883 Income Tar (38,109) Ned Income 76,774 wool (2) Paid Income (807.6) (76, 774x 86.7%) (57,119) 13,660 (6) Transtered to Resenes