Question 50 of 50 Among the items in the financial statements for 20X1, Kadan Company reported the information below. (This is not a complete list of all of the financial statement items.) Accounts receivable $200 Inventory $400 Property, plant, and equipment $1,000 Accounts payable $100 Long-term loans payable $800 Sales $10,000 Cost of goods sol

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Question 50 of 50 Among the items in the financial statements for 20X1, Kadan Company reported the information below. (This is not a complete list of all of the financial statement items.) Accounts receivable

$200

Inventory

$400

Property, plant, and equipment

$1,000

Accounts payable

$100

Long-term loans payable

$800

Sales

$10,000

Cost of goods sold

$7,500

Depreciation expense

$250

Interest expense

$60

In 20X2, sales are expected to increase from

$10,000

to

$13,000

. On January 1,

20\times 2

, Kadan plans to purchase new property, plant, and equipment, increasing the balance from

$1,000

to

$1,500

. Also on January

1,20\times 2

, Kadan plans to obtain new long-term loans, increasing the loan balance from

$800

to

$1,600

. What is a reasonable forecast of the amount of interest expense in

20\times 2

?

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