Compute what are the projected spontaneous liabilities

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Projected Spontaneous Liabilities This year Sales $ 10,000 Balance Sheet: Liabilities Smiley Corporation's current sales and partial balance sheet are shown below.

Accounts payable $ 1,500

Notes payable $ 2,500

Accruals $ 1,400

Total current liabilities $ 5,400

Long-term bonds $ 2,000

Total liabilities $ 7,400

Common stock $ 2,000

Retained earnings $ 2,000

Total common equity $ 4,000

Total liabilities & equity $ 11,400

Problem 1: 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.

Reference no: EM132967835

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