$1$:$23$:$28$

Consider the following simplified financial statements for the Fire Corporation $($assuming no income taxes$).$ The company has predicted a sales increase of $15$ percent. Assume Fire pays out half of net income in the form of a cash dividend. Costs and assets vary with sales, but debt and equity do not. Prepare the pro forma statements and determine the external financing needed.

$5.$

$6$

$7$

$8$

$9$

$10$

$11$

$12$

$13$

$14$

$\backslash$table$[[$Income statement,Balance sheet$],[$Sales$,$$$,32,000,$Assets,$$,25,300,$Debt,$$,5,800],[$Costs$,24,400,,,,$Equity,,$19,500],[$Net income,$7,600,$Total,,,Total,$$,25,300],[$Sales increase,$15\%,,,,,,],[$Payout rate,$50\%,,,,,,]]$

$15$

$16$

$17$

Complete the following analysis. Do not hard code values in your answers.

$18$

$19$

$20$

Pro forma income statement

Pro forma balance sheet

Sheet$1$