Projected Spontaneous Liabilities Smiley Corporation's current sales and partial balance sheet are shown below. This year Sales $ 10,000 Balance Sheet: Liabilities Accounts payable $ 1,500 Notes payable $ 3,000 Accruals $ 1,600 Total current liabilities $ 6,100 Long-term bonds $ 2,000 Total liabilities $ 8,100 Common stock $ 2,000 Retained earnings $ 3,000 Total common equity $ 5,000 Total liabilities & equity $ 13,100 Sales are expected to grow by 12% 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.
Financial Ratios
A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.
Return on Equity
The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
Projected Spontaneous Liabilities
Smiley Corporation's current sales and partial balance sheet are shown below.
| This year | ||||
| Sales | $ | 10,000 | ||
| Balance Sheet: Liabilities | ||||
| Accounts payable | $ | 1,500 | ||
| Notes payable | $ | 3,000 | ||
| Accruals | $ | 1,600 | ||
| Total current liabilities | $ | 6,100 | ||
| Long-term bonds | $ | 2,000 | ||
| Total liabilities | $ | 8,100 | ||
| Common stock | $ | 2,000 | ||
| $ | 3,000 | |||
| Total common equity | $ | 5,000 | ||
| Total liabilities & equity | $ | 13,100 |
Sales are expected to grow by 12% 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.
Answer is not 6832.
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