The firm currently uses straight line depreciation so that depreciation expense in 2017 will be the same as in 2018. Depreciation expense in 2017 was $5,000. Sales are expected to grow by 30% in 2018. All net income is paid out in dividends and no new stock issues are planned. Notes payable at the end of 2017 will be paid off in 2018.
Calculate projected total assets and additional funds needed for 2018.
End of year 2017
Cash $15,000
Accounts Receivable 20,000
Inventory 35,000
Fixed Assets, gross 75,000
Accumulated Depreciation 15,000
Fixed Assets, net 60,000
Accounts Payable 15,000
Notes Payable 25,000
Long-Term Debt 30,000
Common Equity 60,000