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 $ 1,000 Notes payable $ 2,500 Accruals $ 1,600 Total current liabilities $ 5,100 Long-term bonds $ 2,000 Total liabilities $ 7,100 Common stock $ 1,000 Retained earnings $ 2,000 Total common equity $ 3,000 Total liabilities & equity $ 10,100 Sales are expected to grow by 10% 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. $
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 $ 1,000 Notes payable $ 2,500 Accruals $ 1,600 Total current liabilities $ 5,100 Long-term bonds $ 2,000 Total liabilities $ 7,100 Common stock $ 1,000 Retained earnings $ 2,000 Total common equity $ 3,000 Total liabilities & equity $ 10,100 Sales are expected to grow by 10% 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. $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 | $ | 1,000 | ||
| Notes payable | $ | 2,500 | ||
| Accruals | $ | 1,600 | ||
| Total current liabilities | $ | 5,100 | ||
| Long-term bonds | $ | 2,000 | ||
| Total liabilities | $ | 7,100 | ||
| Common stock | $ | 1,000 | ||
| $ | 2,000 | |||
| Total common equity | $ | 3,000 | ||
| Total liabilities & equity | $ | 10,100 |
Sales are expected to grow by 10% 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.
$
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