Solution-Projected spontaneous liabilities

Projected spontaneous liabilities

Reference no: EM133111540

Smiley Corporation's current sales and partial balance sheet are shown below.

	This year
Sales	$10,000
Balance Sheet: Liabilities
Accounts payable	$2,000
Notes payable	$2,000
Accruals	$1,800
Total current liabilities	$5,800
Long-term bonds	$2,000
Total liabilities	$7,800
Common stock	$1,500
Retained earnings	$2,500
Total common equity	$4,000
Total liabilities & equity	$11,800

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: EM133111540

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Projected spontaneous liabilities

Reference no: EM133111540

Reference no: EM133111540

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