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(Solved): Question 50 of 50 Among the items in the financial statements for 20X1, Kadan Company reported the ...



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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