1. Consider the following simplified financial statements for York Corporation. The company has predicted a sales increase of 15%. It has predicted that every item on the balance sheet will increase by 15% as well. Create the pro forma statements = and reconcile them

Income Statement

Sales	$36,000
Costs of goods	$29,800
Net Income	$6,200

Balance Sheet

Assets	$26,400	Debt	$6,300
		Equity	$20,100
Total Assets	$26,400	Total Liab's & Equity	$26,400

2. Assume York Corp. (above) pays out half of the 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.