Garlington Technologies Inc.?s 2019 financial statements are shown here. Suppose that in 2020 sales increase to $4.4 million and that 2020 dividends will increase to $200,000. Forecast the financial statements using the forecasted financial statement method. Assume the firm operated at full capacity in 2019. The long-term bonds have an interest rate of 12%. New financing will be with a line of credit. Assume it will be added at the end of the year. Cash does not earn any interest income.

Income Statement for December 31, 2019Sales ....................................................................................... $4,000,000Operating costs ...................................................................... 3,200,000EBIT .......................................................................................... $ 800,000Interest ....................................................................................... 120,000Pre-tax earnings ..................................................................... $ 680,000Taxes (25%) ................................................................................ 170,000Net income ............................................................................. $ 510,000Dividends ................................................................................ $ 190,000

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Balance Sheets as of December 31, 2019 $ 160,000 $ 360,000 Cash Accounts payable Receivables 360,000 Line of credit Accruals Inventories 720,000 200,000 $ 560,000 Total CA $1,240,000 Total CL Fixed assets Long-term bonds $1,000,000 4,000,000 Common stock $1,100,000 $2,580,000 $5,240,000 RE Total assets Total L&E $5,240,000