Reference no: EM13283956

Stevens Textile's 2010 financial statements are shown below. Balance Sheet as of December 31, 2010 (Thousands of Dollars) Cash $ 1,080 Accounts payable $ 4,320 Receivables 6,480 Accruals 2,880 Inventories 9,000 Notes payable 2,100 Total current assets $16,560 Total current liabilities $ 9,300 Net fixed assets 12,600 Mortgage bonds 3,500 Common stock 3,500 Retained earnings 12,860 Total assets $29,160 Total liabilities and equity $29,160 Income Statement for December 31, 2010 (Thousands of Dollars) Sales $36,000 Operating costs 32,440 Earnings before interest and taxes $ 3,560 Interest 460 Earnings before taxes $ 3,100 Taxes (40%) 1,240 Net income $ 1,860 Dividends (45%) $ 837 Addition to retained earnings $ 1,023 Suppose 2011 sales are projected to increase by 10% over 2010 sales. Use the forecasted financial statement method to forecast a balance sheet and income statement for December 31, 2011. The interest rate on all debt is 8%, and cash earns no interest income. Assume that all additional debt is added at the end of the year, which means that you should base the forecasted interest expense on the balance of debt at the beginning of the year. Use the forecasted income statement to determine the addition to retained earnings. Assume that the company was operating at full capacity in 2010, that it cannot sell off any of its fixed assets, and that any required financing will be borrowed as notes payable. Also, assume that assets, spontaneous liabilities, and operating costs are expected to increase by the same percentage as sales. Determine the additional funds needed. Round your answer to the nearest dollar. Total assets $ AFN $ What is the resulting total forecasted amount of notes payable? Round your answer to the nearest dollar.