L.A. small-business owners forecast higher sales.

Nearly 60% of Los Angeles-area small-business owners forecast increasing sales for 1987, according to a study of 7,000 businesses conducted by Arthur Andersen & Co. Although insurance and other costs have risen dramatically, about 41% of the owners said profits will remain the same and 38% expected improved profits. Nearly 85% reported that insurance premiums had risen between 50% and 100% during the past year, with 34% reporting premiums up more than 200%. Most said they are absorbing the costs and reducing the amount of their coverage.