Cattail Corporation€™s financial statements for the fiscal year just ended are shown below:

Cattail management expects sales to increase by 14 percent next year. Assume that the financial statement accounts vary directly with changes in sales and that management has no financing plan at this time. Given this information, develop a pro forma income statement for Cattail for the next fiscalyear.

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Cattail Corporation Financial Statements for Fiscal Year Just Ended (S thousands) Balance Sheet $700 Income Statement Net sales Costs Net income $1,500 350 $1,150 Debt Equity Total Assets $600 $100 $700 Total $700