Banner's projected current assets for 2015 are
Below is the 2014 year-end balance sheet for Banner, Inc. Sales for 2014 were $1,600,000 and are expected to be $2,000,000 during 2015. In addition, we know that Banner plans to pay $90,000 in 2015 dividends and expects projected net income of 4% of sales. (For consistency with the Answer selections provided, round your forecast percentages to two decimals.)
Banner, Inc. Balance Sheet
December 31, 2014
Assets
Current assets $890,000
Net fixed assets 1,000,000
Total $1,890,000
Liabilities and Owners' Equity
Accounts payable $160,000
Accrued expenses 100,000
Notes payable 700,000
Long-term debt 300,000
Total liabilities 1,260,000
Common stock (plus paid-in capital) 360,000
Retained earnings 270,000
Common equity 630,000
Total 1,890,000
A) $1,000,000.
B) $1,120,000.
C) $1,500,000.
D) $1,260,000.
Answer: B
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