1. Project the 1996 income statement no borrowing.

2. Pro forma assumptions: The average collection period will rise to 32 days due to the firm is selling to an increasing number os smaller firms in 1996. Assume payables at 6.3% of sales in 1996.

3. Assume the Quick Ratio must not follow below .00612

4. Construct the sources and uses statement for 1996 and balance sheet