Tomorrow is unknown Plc. expects sales of GHC 2.4 million next year and the same...
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Accounting
Tomorrow is unknown Plc expects sales of GHC million next year and the same amount the following year. Sales are spread evenly throughout the year. On the basis of the following information, prepare a forecast income statement and balance sheet for the year end:Cash: Minimum of percent of annual salesAccounts reccivable: day average collection period based on annual salesInventories: Turnover of eight times a yearNet fixed assets: GHC now. Capital expenditures equal to depreciation.Accounts payable: One month's purchasesAccrued expenses: percent of salesBank borrowings: GHC now. Can borrow up to GHC Longterm debt: GHC now, payable GHC at year end.Common stock: GHC No additions planned.Retained earnings: GHC now.Net profit margin: percent of sales.Dividends: None.Cost of goods sold: percent of salcs.Purchases: percent of cost of goods sold.Income taxes: percent of beforetax profits.
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