Forecasted Balance Sheet
The following balance sheet asset information is for 2008:
|
Cash |
$ 100 |
|
Accounts receivable |
500 |
|
Inventory |
1,000 |
|
Land |
2,500 |
|
Plant and equipment (net) |
5,000 |
Sales are expected to increase by 25% in 2009. No new land will be needed to support this increased level of sales. This sales increase will require significantly expanded production capacity; net plant and equipment will increase by 40%. Prepare a forecast of the Assets section of the 2009 balance sheet.