Projected Spontaneous LiabilitiesSmiley Corporation's current sales andpartial balance sheet are shown below.SalesBalance Sheet: LiabilitiesAccounts payableNotes payableAccrualsTotal current liabilitiesLong-term bondsTotal liabilitiesCommon stockRetained earningsTotal common equityTotal liabilities & equityThis year$10,000$ 2,000$ 1,500$ 1,400$ 4,900$ 2,000$ 6,900$ 2,000$3,000$ 5,000$11,900Sales are expected to grow by 14% nextyear. Assuming no change in operationsfrom this year to next year, what are theprojected spontaneous liabilities? Do notround intermediate calculations. Roundyour answer to the nearest dollar.

Spontaneous liabilities = Accounts payables + accruals Current Spontaneous liabilities =$2000+$1400…

Sales are expected to grow by 14% next year. Assuming no change in operations from this year to next year, what are the projected spontaneous liabilities? Do not round intermediate calculations. Round your answer to the nearest dollar.

Sales are expected to grow by 14% next year. Assuming no change in operations from this year to next year, what are the projected spontaneous liabilities? Do not round intermediate calculations. Round your answer to the nearest dollar.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 103.3C

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Question

Projected Spontaneous Liabilities
Smiley Corporation's current sales and
partial balance sheet are shown below.
Sales
Balance Sheet: Liabilities
Accounts payable
Notes payable
Accruals
Total current liabilities
Long-term bonds
Total liabilities
Common stock
Retained earnings
Total common equity
Total liabilities & equity
This year
$10,000
$ 2,000
$ 1,500
$ 1,400
$ 4,900
$ 2,000
$ 6,900
$ 2,000
$3,000
$ 5,000
$11,900
Sales are expected to grow by 14% next
year. Assuming no change in operations
from this year to next year, what are the
projected spontaneous liabilities? Do not
round intermediate calculations. Round
your answer to the nearest dollar.

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