Percent of sales: Cattail Corporation’s financial statements for the fiscal year just ended are shown below:

Cattail Corporation Financial Statements for Fiscal Year Just Ended

($ thousands)

Income Statement Balance Sheet Net sales $1,500 Assets $700 Debt $600 Costs 350 Equity 100 Net income $1,150 Total $700 Total $700 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 fiscal year.