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Global Corp. expects sales to grow by 8% next year. Using the percent of sales method and the data provided in the given tables, forecast:

a. Costs except depreciation b. Depreciation c. Net income d. Cash

e. Accounts receivable f. Inventory g. Property, plant, and equipment h. Accounts payable

(Note: Interest expense will not change with a change in sales. Tax rate is 25%.)

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.

(Round to one decimal place and enter all numbers as a positive.)

o Click on the icons located on the top-right corners of the data tables below to copy its contents into a spreadsheet Income Statement ($ million) Balance Sheet ($ million) Net Sales 185.8 Assets Costs Except Depreciation - 175.9 Cash EBITDA 9.9 Accounts Receivable Depreciation and Amortization - 1.2 Inventories EBIT 8.7 Total Current Assets Interest Income (expense) -1.7 Net Property, Plant, and Equipment Pre-tax Income 7 Total Assets Taxes (25%) - 1.8 Net Income 5.2 Liabilities and Equity Accounts Payable Long-Term Debt Total Liabilities Total Stockholders' Equity Total Liabilities and Equity 22.1 17.1 15.3 54.5 112.6 167.1 31.7 113.1 144.8 22.3 167.1

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