Reference no: EM133033475
Question - Larime Corp. is forecasting 20X2 near the end of 20X1. The estimated year-end financial statements and a worksheet for the forecast are given below.
Management expects the following next year.
An 7% increase in revenue.
Price cutting will cause the cost ratio (COGS/sales) to deteriorate (increase) by 1% (of sales) from its current level.
Expenses will increase at a rate that is three quarters of that of sales.
The current accounts will increase proportionately with sales.
Net fixed assets will increase by $6 million.
All interest will be paid at 12%.
Federal and state income taxes will be paid at a combined rate of 43%.
Make a forecast of Larime's complete income statement and balance sheet. Enter your dollar answers in thousands. For example, an answer of $12 thousands should be entered as 12, not 12,000.