Smiley Corporation's current sales and partial balance sheet are shown below. This year Sales $ 10,000 Balance Sheet: Liabilities Accounts payable $ 1,000 Notes payable $ 2,000 Accruals $ 2,000 Total current liabilities $ 5,000 Long-term bonds $ 2,000 Total liabilities $ 7,000 Common stock $ 2,000 Retained earnings $ 2,000 Total common equity $ 4,000 Total liabilities & equity $ 11,000 Sales are expected to grow by 8% 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.
Smiley Corporation's current sales and partial balance sheet are shown below. This year Sales $ 10,000 Balance Sheet: Liabilities Accounts payable $ 1,000 Notes payable $ 2,000 Accruals $ 2,000 Total current liabilities $ 5,000 Long-term bonds $ 2,000 Total liabilities $ 7,000 Common stock $ 2,000 Retained earnings $ 2,000 Total common equity $ 4,000 Total liabilities & equity $ 11,000 Sales are expected to grow by 8% 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.
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 50E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...
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Smiley Corporation's current sales and partial balance sheet are shown below.
| This year | ||||
| Sales | $ | 10,000 | ||
| Balance Sheet: Liabilities | ||||
| Accounts payable | $ | 1,000 | ||
| Notes payable | $ | 2,000 | ||
| Accruals | $ | 2,000 | ||
| Total current liabilities | $ | 5,000 | ||
| Long-term bonds | $ | 2,000 | ||
| Total liabilities | $ | 7,000 | ||
| Common stock | $ | 2,000 | ||
| $ | 2,000 | |||
| Total common equity | $ | 4,000 | ||
| Total liabilities & equity | $ | 11,000 |
Sales are expected to grow by 8% 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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