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Homework answers / question archive / Smiley Corporation's current sales and partial balance sheet are shown below
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 $ 1,500 Accruals $ 1,800 Total current liabilities $ 4,800 Long-term bonds $ 2,000 Total liabilities $ 6,800 Common stock $ 2,000 Retained earnings $ 2,500 Total common equity $ 4,500 Total liabilities & equity $11,300 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.
Answer Spontaneous Liability include Accounts payable and accruals.But not include Notes pyabble
Projected Spontaneous Liability = (Accounts payable + accruals) * (1 + growth rate)
= (1500 + 1800) * 1.08
= 3564
